Case Law Details
UITC India Pvt. Ltd. Vs Union of India (Orissa High Court)
Petitioner filed applications under the SVLDR-1 for availing the benefit of the said Scheme. The Department however rejected the applications on the ground ineligibility observing that in terms of Section 125(1)(h) of the Finance Act, 2019 “the product falling under the Fourth Schedule to the CE Act is not eligible for this Scheme”.
The above interpretation placed by the Department on Section 125(1)(h) of the Finance Act, 2019 appears not to be correct. No doubt that the Petitioner’s product (Process Oil) falls under the Fourth Schedule to the CE Act but as far as the rate of duty is concerned, as already noticed, what is indicated is ‘…..’. The said ‘….. ’ has been defined as indicating that in respect of the goods against which the above ‘…..’ is found, excise duty is not leviable at all. Therefore, there is no question of the Petitioner’s product being outside the purview of the SVLDR Scheme read with the Fourth Schedule to the CE Act. The Court, therefore, rejects the plea of the Department that the Petitioner would be ineligible for the benefit of the SVLDR Scheme.
In that view of the matter, the Court quashes the order dated 16th December, 2019 and other similar orders issued by the Department (all of which have been assailed by the Petitioner in the writ petitions) rejecting the SVLDR applications of the Petitioner since they are based on an erroneous interpretation of not only the SVLDR Scheme but also Section 125(1)(h) of the Finance Act.
A direction is issued to the Department to process the Petitioner’s applications for amnesty under the SVLDR Scheme and after hearing the Petitioner on a date to be informed to the Petitioner at least one week in advance and to pass a reasoned order on the Petitioner’s applications under the said SVLDR Scheme within a period of four weeks thereafter and, in any event, on or before 13th February, 2023 with the order being communicated to the Petitioner within a week thereafter. No further directions are called for.
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