Premier Bars Private Limited Vs Union of India (Rajasthan High Court)
Premier HC Holds Redemption Fine Covered Under SVLDR Scheme, Sets Aside Rejection of Declaration
The Rajasthan High Court considered a writ petition challenging the order dated 12.11.2019 passed by the Designated Committee rejecting the petitioner’s declaration in Form SVLDR-1 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme). The declaration had been rejected on the ground that redemption fine did not fall within the scope of the Scheme, making the petitioner ineligible.
The petitioner, a private limited company engaged in the manufacture of steel products, pipes, poles, precast concrete, real estate construction and safety products, was registered under the Central Excise Act, 1944. By an Order-in-Original dated 30.03.2017, the adjudicating authority confiscated 291.218 MT of MS Ingots valued at Rs. 78,62,886, while granting an option to redeem the goods on payment of a redemption fine of Rs. 10,00,000 and imposing a penalty of Rs. 3,00,000. The Commissioner’s appellate order dated 16.02.2018 upheld the Order-in-Original, following which the petitioner filed an appeal before the CESTAT under Section 35B of the Central Excise Act, 1944. During the pendency of that appeal, the petitioner sought settlement under the SVLDR Scheme by filing Form SVLDR-1. The Designated Committee rejected the declaration on the same day it was filed, stating that “RF not covered under the SVLDRS.”
