Case Law Details
Ideal Broadcasting India Pvt Ltd Vs Union of India (Delhi High Court)
Delhi High Court held that the applicant filing declaration under SVLDR Scheme cannot quantify the amount since it was the prerogative of the Department to quantify the amount.
Facts- The grievance of the petitioner company was that the benefit of the SVLDR scheme was confined to all such cases where the appeal was pending or had been decided prior to 30.06.2019 and although the petitioner company was desirous of availing itself of the benefit under the SVLDR scheme, an appeal was filed on 16.08.2019; but the SVLDR Scheme excluded such a category of cases where no appeal was pending before the ‘cut-off date’ although the appeal was statutorily available by the end date, i.e., 30.06.2011.
As the grievances of the petitioner were addressed, the Writ Petition was disposed of vide order dated 03.12.2019. It is an admitted fact that the petitioner company withdrew their appeal in terms of Circular dated 29.10.2019, vide order dated 27.01.2020 although prior thereto it had submitted Form SVLDRS-1 dated 30.12.2019 declaring total tax dues to the tune of Rs. 17,37,932/- under litigation category.
Conclusion- A comprehensive and harmonious interpretation of Section 123 (a) (1) read with Section 124(1) (a) of the SVLDR Scheme leaves no scope for doubt that on withdrawal of the appeal filed post 01.07.2019 and on filing of declaration, its case was to be considered under the “arrears” category so much so that the petitioner even accepted the calculation computed by the Department and paid the payable amount as mentioned in the SVLDRS-3 without any demur or protest on the basis of which Discharge Certificate was issued on 03.07.2020. At the cost of repetition, once the pending litigation had been withdrawn, the demand of duty raised by the tax authorities attained “finality” and a fortiori fell under the definition of “amount in arrears” and the declaration was rightly considered under the “arrears” category.
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