HC directs consideration of amount paid during inquiry stage under SVLDRS

Hilton Hotel Management Services Pvt. Ltd. Vs Union of India and ors (Punjab and Haryana High Court)

Petitioner-Company has filed the present writ petition seeking writ in the nature of certiorari for quashing the portion of the Impugned statement issued by the Designated Committee in the Form of SVLDRS-3 dated 08.01.2020 (Annexure P-1) whereby the Designated Committee has not adjusted the amount of INR 1,32,27,955/- already deposited by the petitioner (as interest under protest) during the stage of investigation against the amount payable under the Sabka Vikas (Legacy Dispute Resolution) Scheme, 2019.

At the very outset, learned counsel for the petitioner has referred to Division Bench judgment of this Court in a case of Schlumberger Solutions Pvt. Ltd vs. Commissioner, Central GST and others, passed in CWP-6845-2020, decided on 30.11.2021 wherein the petitioner was served with a show cause notice whereby further amount of Rs.9,86,53,074/- was sought to be recovered on account of cenvat credit.

This amount included interest and penalty as well. In the meantime, Finance (No. 2) Act 2019 was introduced by the Central Government. The object of the scheme was to provide the settlement of pending disputes related to indirect taxes. The petitioner being eligible under the said scheme availed the same by making declaration in Form SVLDRS-1. The question before this Court was that as to whether the petitioner is entitled for credit of amount deposited under the head of interest and penalty while quantifying the amount payable under the scheme. This Court allowed the petition and the operative part of the judgment reads as under:-

Section 124 of the Finance Act provides for calculation of the relief available to the declarant and the same reads as follows:-

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