Case Law Details
RS HR Team Solutions Private Limited Vs Union of India (Bombay High Court)
Heard Mr. Jas Sanghavi, learned counsel for the petitioners and Mr. Sham Walve along with Mr. Ram Ochani, learned counsel for the respondents.
2. By filing this petition under Article 226 of the Constitution of India, petitioners seek quashing of orders dated 12.02.2020 and 08.06.2020 rejecting the declarations of the petitioners dated 27.11.2019 and 10.01.2020 respectively under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (briefly “the scheme” hereinafter) and further seeks a direction to the respondents to reconsider the said declarations in terms of the scheme and grant the consequential reliefs. Further prayer made is for a direction to the respondents not to proceed with the show cause notice dated 30.12.2020 issued by respondent No.6.
3. Petitioner No.1 is a company incorporated under the Companies Act, 1956 and is engaged in the business of providing manpower recruitment and payroll processing services. Petitioner No.2 is a director of petitioner No.1. Being a service provider, petitioner No.1 got itself registered as a service provider under the Finance Act, 1994.
4. It is stated that because of severe financial crisis and other difficulties, petitioners could not discharge their erstwhile service tax liability and the subsequent goods and services tax (GST) liability to the tune of Rs.11.1 crores approximately till February, 2018. In this connection, two summons were issued to the petitioners both dated 30.03.2018. Responding to the summons, petitioner No.2 appeared before the Superintendent in the office of the Directorate General of Goods and Services Tax Intelligence (DGGSTI), Zonal Unit, Mumbai on 30.03.2018. On that date his statement was recorded under section 14 of the Central Excise Act, 1944 read with section 174 of the Central Goods and Services Tax Act, 2017 ( briefly “the CGST Act” hereinafter) as well as under section 70 of the said Act. Question No.5 put to petitioner No.2 was as to what was the service tax and GST liability of petitioner No.1 as on February, 2018. In his reply petitioner No.2 stated that till February, 2018 service tax liability would be Rs.6 crore approximately and GST liability would be Rs. 5.1 crore approximately, total amounting to Rs. 11.10 crores. He admitted that despite charging and collecting service tax from the clients, the same was not deposited into the government exchequer.
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