Orissa Stevedores Ltd. Vs Designated Committee (Orissa High Court)
In a recent decision, the Orissa High Court addressed a dispute involving Orissa Stevedores Ltd. and the Designated Committee concerning tax relief eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The case centers on a show cause notice (SCN) issued in 2015, which alleged short payment of service tax by Orissa Stevedores Ltd. for the financial year 2013-14, leading to a substantial tax demand.
Background of the Case
Orissa Stevedores Ltd., represented by senior advocate Mr. Sahoo, received an SCN on April 23, 2015, demanding service tax exceeding ₹16.15 crores for 2013-14. In response, the company applied for relief under the Sabka Vishwas Scheme in 2019, submitting Form SVLDRS-1, a mandatory document for the scheme. Through this form, Orissa Stevedores Ltd. acknowledged a significant tax liability and stated it had deposited around ₹10 crores in duty payments.
However, the Revenue department responded with Form SVLDRS-2, indicating the total tax was due, citing no pre-deposit. Mr. Sahoo countered this assertion by presenting evidence of a combined cash payment of approximately ₹26 crores and an additional CENVAT credit adjustment of ₹19.15 crores, all reportedly covering the financial year in question. He argued that this combination of payments should satisfy the pre-deposit requirement under the scheme.
