Case Law Details
Seventh Plane Network Private ltd. Vs. Union of India & ORS. ( Delhi High Court)
The issue under consideration is whether the petitioner was eligible to apply under the SVLDRS, 2019 even if the amount of duty involved in the audit had not been quantified before 30th June, 2019?
High Court states that, the audit in the present case was concluded on 28th June, 2019 and the amount due and payable was not only determined as well as communicated by the respondents to the petitioner but was also admitted by the petitioner. This Court finds that the duty amount mentioned in Form SVLDRS-1 by the petitioner is the same amount that had been admitted by the declarant during the last visit of the Audit Team on 28th June, 2019 as mentioned in the respondents’ Audit Memo dated 2nd July, 2019. Though the petitioner vide its letter dated 3rd July, 2019 had asked for reduction in demand on account of change in the calculation formula, yet it had not denied the demand that had been quantified by the respondents and admitted on 28th June, 2019. Keeping in view the aforesaid admitted facts, High Court is of the view that the duty liability stood admitted in an oral statement by the petitioner before 30th June, 2019 and consequently stood quantified prior to the cut-off date in accordance with the beneficial circulars dated 12th December, 2019 and 27th August, 2019 issued by the Central Board of Indirect Taxes and Customs. High Court is further of the opinion that a liberal interpretation has to be given to the SVLDRS, 2019 and the circulars issued by Central Board of Indirect Taxes and Customs as their intent is to unload the baggage relating to legacy disputes under the Central Excise and Service Tax and to allow the businesses to make a fresh beginning. Accordingly, the rejection order dated 17th January, 2020 is quashed and the Designated Committee is directed to decide the petitioner’s application in accordance with the observations and findings of this Court after giving an opportunity of hearing to the petitioner.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. The petition has been heard by way of video conferencing.
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