HC permits to pay Tax Liability as calculated by Petitioner under SVLDR Scheme

Eureka Fabricators Pvt Ltd Vs Union of India & Ors. (Bombay High Court)

The issue under consideration is whether the rejection of petitioner’s application under Sabka Vishwas (Legacy Dispute Resolution) Form No. SVLDRS-3 in respect of central excise duty payable is justified by law?

In the present case, The petitioner, Eureka Foundation is a manufacturing unit that manufactures pressure vessels in relation to Road Tankers and Storage Tanks falling under tariff item of the First Schedule to the Central Excise Tariff Act, 1985. The petitioner’s factory was raided and an investigation was carried out resulting in the issuance of Show-Cause-cum-Demand notice to the petitioner calling upon the petitioner to deposit an amount as worked out and recoverable from the petitioner under the provisions of Section 11A(4) of the Central Excise Act, 1944. The Government of India issued notification framing Sabka Vishwas Rules, 2019 giving an opportunity to the parties for declaration of tax dues payable under the Sabka Vishwas (Legally Dispute Resolution) Scheme, 2019 (SVLDR Scheme 2019). The petitioner filed an online application in Form No. SVLDRS-1 declares tax dues payable under the Scheme, after deduction of the amount already paid, which is rejected by the department.

High Court state that, it would not be appropriate for us to confirm the quantification of balance final estimated amount payable under the scheme especially when it is the petitioner’s case that respondent No. 3 Committee has failed to consider the petitioner’s case in the light of the interpretation and application of the above provisions and has not heard the petitioner before confirming the balance final demand. But since the petitioner is ready and willing to deposit the amount with the revenue within a period of one week, HC permit the petitioner to deposit the same within a period of one week.

FULL TEXT OF THE ITAT JUDGEMENT

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