Madras HC directs issue of Form SVLDRS-4 as revenue accepts mistake in Tax calculation

S.D. Arun Associates Vs Designated Committee (Madras High Court)

The Hon’ble Madras High Court in M/S. S.D. Arun Associates v. Designated Committee (SVLDRS) & Anr. [W.P.(MD) No. 21092 of 2021 and W.M.P(MD). No. 17687 of 2021 dated December 10, 2021] directed the Revenue Department to issue a discharge certificate in FORM SVLDRS-4 either manually or electronically for the payment made by the assessee under the Sabka Vishwas Legacy Disputes Resolution Scheme, 2019 (SVLDR Scheme) as no tax dues are pending.

Facts:

This petition has been filed by M/S. S.D. Arun Associates (“the Petitioner”) to call for the records of the Revenue Department (“the Respondent”) relating to the FORM SVLDRS-3 dated May 22, 2020 issued to the Petitioner for the payment already made by the Petitioner under SVLDR Scheme to settle disputes pending at various levels being disputed legacy tax levies and owing to the Goods and Services Tax (“GST”) regime and for issuance of Discharge Certificate in FORM SVLDRS-4 in accordance with SVLDR Scheme.

Held:

• Observed that, the affidavit filed by the Respondent drops the curtains and make it clear that the Petitioner’s case is correct and the Petitioner need not have to pay tax which triggered the matter. There is no disputation or disagreement between both sides on the same.
• Allowed the writ petition on the basis of the affidavit filed and the articulation done by the Respondent.
• Directed the Respondent to issue a discharge certificate either manually or electronically within 8 weeks.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

In the captioned writ petition, Mr. G.Natarajan, learned counsel on record for the sole writ petitioner and Ms.S.Ragaventhre, learned Junior Standing Counsel for Customs and Central Excise on behalf of both the respondents are before me.

2. The common proceedings made in the captioned main writ petition and W.M.P therein i.e., captioned W.M.P of the previous listing on 26.11.2021 reads as follows:

‘Captioned main writ petition pertains to ‘Sabka Vishwas Legacy Disputes Resolution Scheme, 2019′ (hereinafter ‘SVLDRS’ for the sake of brevity, convenience and clarity). Mr.G.Natarajan, learned counsel for writ petitioner submits that SVLDRS was introduced vide Chapter V of the Finance Act, 2019 to settle disputes pending at various levels being disputed legacy tax levies and this is owing to the GST (Goods and Services Tax) regime kicking in on and from 01.07.2017.

2. Learned counsel submits that the writ petitioner comes under the category ‘Litigation’ as appeals were pending as on 30.06.2019. To be noted, this pertains to service tax. Learned counsel submits that the first respondent in the captioned writ petiton i.e., ‘designated committee’ (hereinafter ‘said Committee’ for the sake of convenience and clarity) issued SVLDRS-2 form to the petitioner on 04.02.2021 wherein the tax dues was mentioned as INR 29,94,239/-. It also shows that the amount already paid by the petitioner as INR 19,19,911/- but the balance has been shown as NIL. Learned counsel submits that in the form instead of showing tax relief under SVLDRS scheme as 70% of tax payable (INR 20,95,967/-) INR 10,74,328/- was mentioned.

3. Writ petitioner took up the matter with the authorities concerned, in the interregnum, the writ petitioner’s appeal was disposed of and the matter is now remanded to the second respondent who is in seizin of the issue.

4. Learned counsel submits that the figure of INR 19,19,911/- being the tax paid by the writ petitioner has not been disputed and this is also reflected in SVLDRS-3 form. Only with regard to actual tax relief, an error appears to have crept in. Learned counsel submits that this is more in the nature of an inadvertent technical/technological/secretarial error. Notwithstanding this SVLDRS-3 form has been erroneously issued saying there is 30% tax balance.

5. It is further say of learned counsel that if the above error is recitified, the writ petitoiner will be entitled to a discharge certificate which this Court is informed is SVLDRS-4.

6. Ms. Ragaventhre, learned Junior standing Counsel for Customs and Central Excise who accepts notice on behalf of both the respondents requests for two weeks time to get instructions and revert to this Court.

7. This Court finds that there is a prima facie case to issue notice regarding admission. However as the Revenue counsel who has accepted notice on behalf of respondents has sought time to get instructions, if the second respondent concludes the remanded proceedings in the interregnum, it can lead to an irreversible situation and therefore, the proceedings before the second respondent vide C.No.V/ST/15/63/2015-Adjn dated 12.11.2021 (De novo adjudication) shall be kept in abeyance and remain stayed till next listing.

8. List under the caption ‘NOTICE REGARDING ADMISSION’ in the next listing. Registry to show the name of Revenue counsel in the cause list.

9. List on 10.02.2022.’

3. In continuation of the aforementioned proceedings, learned Revenue counsel has today filed a counter-affidavit dated 08.12.2021, sworn by incumbent Deputy Commissioner of GST and Central Excise, Tirunelveli Sub-Commissionerate. Though styled and captioned counter-affidavit, it is in effect an affidavit as the respondents’ stated position (in response to paragraph 10 of the writ affidavit) reads as follows:

4. The above stated position of respondents draws the curtains i.e., drops the curtains on the captioned main writ petition as the respondents have made it clear that writ petitioner’s case is correct and the petitioner need not have to pay tax which triggered captioned matter. There is no disputation or disagreement between both sides on this.

5. Before I pronounce the operative portion of this order, I deem it appropriate to place on record appreciation of this Court for the fair approach taken by the learned Revenue counsel and the respondents.

6. Owing to the aforementioned stated position of the respondents, the articulation of which has been extracted and reproduced supra, the sequitur is captioned writ petition is allowed and the first respondent shall issue a discharge certificate as sought for in the prayer in the writ petition either manually or electronically within eight weeks from today i.e., on or before 21.01.2022. Consequently, captioned WMP is disposed of as closed. There shall be no order as to costs.

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