Metallurgical Services Vs Union of India (Bombay High Court)
The Bombay High Court recently rendered a significant judgment in the case of Metallurgical Services vs. Union of India. The court addressed the controversy surrounding the issuance of Form SVLDRS 3 by the Designated Committee, delving into the procedural irregularities and violations of natural justice.
The petitioner, a Partnership Firm engaged in technical testing and certification services, found itself embroiled in a dispute with the service tax department over alleged discrepancies in income tax and service tax returns. Despite the petitioner’s contention that it had already deposited a significant sum towards the alleged dues, the authorities proceeded with a Show Cause Notice dated 12th April 2019, proposing hefty demands.
The introduction of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 offered a glimmer of hope for resolution. The petitioner filed Form SVLDRS 1 under the scheme, declaring the tax dues. However, subsequent actions by the authorities, particularly the issuance of Form SVLDRS 3, which disallowed the pre-deposit made by the petitioner, sparked legal action.
The crux of the petitioner’s argument lay in the procedural lapses and violations of the Sabka Vishwas Scheme’s provisions. The court meticulously examined the relevant sections and rules, emphasizing the necessity of issuing Form SVLDRS 2 when there’s a dispute regarding the payable amount. It underscored the petitioner’s entitlement to a personal hearing before finalizing the amount payable.
