Case Law Details
FTA HSRP Solutions PVT. LTD. Vs Union of India (Gujarat High Court)
Gujarat High Court held that benefit under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) duly available as tax was quantified on or before 30.06.2019. In fact, tax liability was duly discharged by the petitioner and communicated to the department vide letter dated 21.05.2019.
Facts- The petitioner is engaged in the business of manufacturing, supply and distribution of HSRPs in the State of Gujarat. Accordingly, the petitioner imports goods by a vessel from a place outside India to the customs station of clearance in India for which the petitioner pays ocean freight. The company did not pay service tax on royalty as well as on the ocean freight services under reverse charge mechanism.
The petitioner company therefore was issued a summons u/s. 14 of the Central Excise Act, 1944 read with Section 70 of the CGST Act, 2017. In compliance of the summons, the petitioner supplied all the documents in which all tax liabilities were duly admitted. The total service tax liabilities of Rs.92,12,344/- was paid by the petitioner and in proof thereof challans are annexed to the petition. As the tax liability with interest was discharged, waiver of show-cause notice and close the investigation was requested.
Meanwhile, SVLDRS came into force which provided a window from 01.09.2019 for declaration of tax dues. The petitioner filed an application/declaration u/s. 125 of the Finance Act, 2019 online through SVLDRS-1 stating the tax dues to the extent of Rs.92,12,344/- and therefore there was zero tax liability. The said declaration was rejected on the ground that the declared tax had not been quantified and communicated on or before 30.06.2019.
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