Case Law Details
Gujan Builder Vs Designated Committee (Madras High Court)
In this case The SVLDRS 4 was not issued by the Designated Committee at that point of time. Since there is no provision to manually process it now, your request to issue discharge certificate cannot be acceded to. Moreover, the only situation where manual processing is possible as per Board Instruction No.01/2021-CX dated 17.03.2021 covers only those cases where the High Court has decided the case in favour of the declarant and remanded the matter back to the concerned Designated Committee for fresh decision.
HC held that the reason cited by the respondent through the order dated 22.02.2022 that, manual process can be undertaken only pursuant to the order passed in this regard by the court of Law. The said reason cited by the respondents which is impugned herein dated 22.02.2022 is totally unsustainable as it is an internal issue of the Designated Committee under the Scheme to go for an alternative mechanism to do it either manually or otherwise. Therefore, for such process, they need not wait for an order from this Court.
This Court has necessarily to show its indulgence and accordingly this Court is inclined to dispose of this writ petition with the following order.
- That the impugned order dated 22.02.2022 is set aside and a direction is given to the Designated Committee to manually process the request of the petitioner dated 07.02.2022 and issue a Discharge Certificate and needful as indicated above shall be undertaken within four weeks from the date of receipt of a copy of this order.
- As a sequel, the show cause notice issued by the Revenue dated 26.11.2019 also is liable to be set aside and it is accordingly set aside.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The prayer sought for herein is for a Writ of Certiorarified Mandamus calling for the records relating to the show cause notice issued by the 2nd respondent bearing No.SCN No.31/2019 dated 26.11.2019 and quash the same and consequently direct the 1st respondent to issue a discharge certificate in form SVLDRS-4 for I.D.2412190000601 dated 24.12.2019 as the requisite liability of more than 50 per cent of the tax dues as per the said scheme has already been paid by the petitioner and quash the same.
2. The petitioner, in respect of the due payable by way of service tax, opted to avail the Sabka Vishwas Scheme, 2019 where Form-1 was made pursuant to which Form-2 has been issued and based on which the amount determined has been paid and though the amount determined has been paid, the earlier e-communication suggested that still a sum of Rs.37,89,582/- has to be paid. When that was clarified by the petitioner, ultimately the amount payable by the petitioner has become NIL and this has also been disclosed by the Designated Committee under the Scheme.
3. Therefore, when all these proceedings have been completed as early as on 14.07.2020, the only issue left is to issue Discharge Certificate under Form-4. When this was asked for by the petitioner by a request dated 07.02.2022, the same has been rejected by the Designated Committee by order dated 22.02.2022 in the following terms.
“ Kind reference invited to your letter dated 07.02.2022 on above subject wherein you had requested for issue of Discharge Certificate (SVLDRS 4).
The SVLDRS 4 was not issued by the Designated Committee at that point of time. Since there is no provision to manually process it now, your request to issue discharge certificate cannot be acceded to. Moreover, the only situation where manual processing is possible as per Board Instruction No.01/2021-CX dated 17.03.2021 covers only those cases where the High Court has decided the case in favour of the declarant and remanded the matter back to the concerned Designated Committee for fresh decision. Hence your request for issue of discharge certificate now is rejected.”
4. In view of the delay in giving the Discharge Certificate in Form-4 because of the said denial letter dated 22.02.2022, the Revenue has issued a show cause notice dated 26.11.2019 and that show cause notice is still pending. Therefore, challenging the earlier show cause notice dated 26.11.2019 and the present rejection order dated 22.02.2022 this writ petition has been filed.
5. Heard Mr. G. Natarajan, learned counsel appearing for the petitioner who Hema Muralikrishnan, learned Senior Standing Counsel appearing on behalf of the respondents, though made some attempt to sustain the order of rejection dated 22.02.2022, I am not impressed with the same because, the reason cited by the respondent through the order dated 22.02.2022 that, manual process can be undertaken only pursuant to the order passed in this regard by the court of Law. The said reason cited by the respondents which is impugned herein dated 22.02.2022 is totally unsustainable as it is an internal issue of the Designated Committee under the Scheme to go for an alternative mechanism to do it either manually or otherwise. Therefore, for such process, they need not wait for an order from this Court.
Mrs.Hema Muralikrishnan, learned Senior Standing Counsel appearing on behalf of the respondents, though made some attempt to sustain the order of rejection dated 22.02.2022, I am not impressed with the same because, the reason cited by the respondent through the order dated 22.02.2022 that, manual process can be undertaken only pursuant to the order passed in this regard by the court of Law. The said reason cited by the respondents which is impugned herein dated 22.02.2022 is totally unsustainable as it is an internal issue of the Designated Committee under the Scheme to go for an alternative mechanism to do it either manually or otherwise. Therefore, for such process, they need not wait for an order from this Court.
7. Nevertheless, since the order dated 22.02.2022 has been passed citing the said reason, which is under challenge in this writ petition, this Court has necessarily to show its indulgence and accordingly this Court is inclined to dispose of this writ petition with the following order.
- That the impugned order dated 22.02.2022 is set aside and a direction is given to the Designated Committee to manually process the request of the petitioner dated 07.02.2022 and issue a Discharge Certificate and needful as indicated above shall be undertaken within four weeks from the date of receipt of a copy of this order.
- As a sequel, the show cause notice issued by the Revenue dated 26.11.2019 also is liable to be set aside and it is accordingly set aside.
8. With the above directions, this writ petition is disposed of. No costs.
Consequently, connected miscellaneous petition is closed.
