Case Law Details
Loyalty Solutions And Research Private Limited Vs Union Of India And Others (Punjab & Haryana High Court)
The Designated Committee constituted under Amnesty Scheme vide impugned order dated 24.02.2020 (P-19) rejected declaration filed with respect to appeal pending before Tribunal on the ground that petitioner has filed single declaration with respect to four show cause notices whereas petitioner in terms of Rule 3 (2) of SVLDR Rules, 2019 was bound to file separate application for each show cause notice. The respondent accepted declaration with respect to 5th show cause notice.
We find it appropriate to notice that the petitioners in view of Rule 6A of the CESTAT (Procedure) Rules, 1982 filed single appeal before the Tribunal against the common order passed by Adjudicating Authority in respect of different show cause notices involved herein.
From the reading of ule 6A of the CESTAT (Procedure) Rules, 1982, it is evident that with respect of one order, single appeal irrespective of number of show cause notices may be filed. The petitioners undisputedly had filed single appeal with respect to more than one show cause notices. Filing of appeal before Tribunal is a substantial right whereas filing of declaration under Amnesty Scheme is mere procedural formality as declaration is maintainable if eligibility conditions are complied with which are enumerated under Section 123 to 125 of the Finance Act, 2019. Indubitably, the petitioners are complying with all the eligibility conditions. Thus, the Petitioners cannot be denied the relief claimed.
To be fair to the counsel for the respondent, we deal with his argument that intention of legislature cannot be gone into if language is plain and unambiguous especially in taxation matters. The scheme in question is not a piece of taxation legislation, instead, it is a piece of beneficial legislation for Union as well dealers/assessee. The Government is getting revenue without litigation and assessee is getting immunity from partial tax liability as well as interest and penalty, thus there is win-win situation for both sides. The Amnesty Scheme was launched to minimize litigation and respondent seems to unnecessarily dragging the matter. The hyper technical approach of the officials/authorities is contrary to the intent and purport of the beneficial scheme and the mandate of the Parliament. The Finance Act has excluded various categories of persons from the scheme and it is undisputed that petitioners fall within category of eligible persons. It is settled law even under taxation that if a person is eligible to one or another benefit, he should not be denied said benefit on procedural or technical grounds. The requirement of strict compliance of conditions is necessary to ascertain eligibility, however procedural formalities need not to be strictly complied with. Filing of one or more declarations has been prescribed by Rules whereas conditions of eligibility have been prescribed by Finance Act, 2019. The filing of separate declaration is not even condition whereas it is sort of procedure. Once an assessee complies with conditions prescribed by Finance Act, 2019 and no prejudice is caused to the revenue by filing of single declaration instead of multiple, we do not find any reason to deny benefit on the ground of non-compliance of any condition which is purely procedural in nature. Our findings are fortified by recent judgment of Hon’ble Supreme Court in L & T Housing Finance Ltd. Versus Trishul Developers and another (2020) 10 SCC 659, wherein it has been held that an action cannot be held to be bad in law merely on raising a trivial objection which has no legs to stand unless the person is able to show any substantial prejudice. In the present case, no prejudice has been or would be caused to the Revenue and if at all, severe prejudice would be caused to the petitioner in case his prayer is not accepted, in the light of the object of the Amnesty Scheme by permitting adoption of hyper technical approach.
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