HC directs Designated Committee to consider Assessee SVLDR Scheme declaration as valid

Elaf Tours and Travels Vs Union of India (Bombay High Court)

Conclusion: While considering a declaration seeking amnesty under the scheme; the approach should be to ensure that the scheme was successful and therefore a liberal view embedded with the principles of natural justice was called for. Thus, rejection of the declaration of assessee by the Designated Committee was not justified. Accordingly, the consequential relief was granted in terms of the scheme after giving an opportunity of hearing to assessee, who shall be informed about the date, time, and place of the hearing.

Held:  Assessee carried on the business of Haj and Umrah tours/journeys to Saudi Arabia and had been facilitating Haj pilgrimage to Saudi Arabia since many years. Show cause cum demand notice was issued to assessee by the Deputy Commissioner of Central Goods and Service Tax (CGST) and Central Excise, Palghar alleging amongst others that assessee had failed to pay service tax amount of Rs.19,21,465.00 for the period from 2013-14 to 2017-18 (upto June, 2017). After the personal hearing assessee filed written submission. By the order in original, Adjudicating Authority confirmed the demand of service tax amounting to Rs.19,21,465.00 besides ordering payment of interest and imposition of penalty. In the meanwhile, Central Government introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to bring an end to pending litigations under the earlier indirect tax regime which now stood subsumed under the Goods and Services Tax (GST). The scheme was made effective from 1^st September, 2019. To avail the benefits under the scheme assessee filed application (declaration) under section 125 in form SVLDRS-1 on 8^th January, 2020 under the arrears category with further sub-category of appeal not filed or appeal having attained finality. However, assessee received an e-mail rejecting the declaration filed by assessee. The Court clarified that this was the broad picture that the officials should have in mind while considering a declaration seeking amnesty under the scheme; the approach should be to ensure that the scheme was successful and therefore a liberal view embedded with the principles of natural justice was called for. It was held that rejection of the declaration of assessee dated 8th January, 2020 by the Designated Committee on 14^th February, 2020 was not justified. Accordingly the same was hereby set aside and quashed. Assessee was eligible to file declaration under the arrears category. Consequently, the matter was remanded back to the Designated Committee to consider the declaration of assessee on 8^th January, 2020 as a valid declaration and thereafter grant consequential relief in terms of the scheme after giving an opportunity of hearing to the assessee, who should be informed about the date, time and place of hearing. Such decision should be in the form of a speaking order with due intimation to assessee.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

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