Bramhanand Kanojia Vs Union of India (Bombay High Court)
Summary: The Bombay High Court in the case of Bramhanand Kanojia v. Union of India (Writ Petition No. 1883 of 2023) ruled in favor of the petitioner, a sole proprietor of M/s. Evershine Cleaners, who sought to avail the benefits of the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDR Scheme). The petitioner had admitted to a service tax liability of approximately ₹21.70 lakhs, part of which had already been paid by 2019. Despite this, his application for settlement was rejected twice, citing that the duty amount was not quantified before June 30, 2019, as stipulated by Section 125(1)(e) of the SVLDR Scheme. The rejection was based on the issuance of a show-cause notice after the deadline, even though the duty had been quantified earlier, in 2018, and partial payments had been made. The Court observed that Section 125(1)(e) excludes those whose duty amounts were not quantified by June 30, 2019. However, it held that this provision does not disqualify the petitioner, as the duty was quantified earlier, albeit with some discrepancies in the exact amount. The court also emphasized that while the duty amount was revised in the show-cause notice issued after the deadline, the initial quantification was made well before June 30, 2019. Therefore, the rejection of the petitioner’s application was wrongful, and the Court directed the respondents to accept the declaration, allowing the petitioner to settle the matter by paying the revised amount, including interest. Furthermore, the Court noted that under Section 126 of the Scheme, the Designated Authority could have corrected the figures, which was not allowed in this instance due to the premature rejection.
