SVLDR: Designated Committee cannot revisit the issue after determination 

GT Holidays Private Limited Vs Designated Committee (Madras High Court)

Designated Committee cannot revisit the issue if once made the determination under Section 127(4) r/w. Rule 6 of the SVLDR Scheme Rules, 2019

Conclusion:  If during the verification process contemplated by Rule 6, if the designated committee finds that the applicant is not eligible to make a declaration under Section 125 of the Act, the declaration ought to be returned or rejected at that stage itself. Having moved to the next stage, the designated committee cannot retrace its steps. It cannot revisit the issue on merits, having once made the determination under Section 127(4) of the Finance (No.2) Act, 2019 r/w. Rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.

Held: Assessee-company had submitted their application in Form SVLDRS-1 on 30.12.2019 under the said scheme. On 21.02.2020, the designated committee after consideration of facts on record determined the amount estimated to be payable by assessee towards full and final settlement of its tax dues and issued Form No.SVLDRS-2 quantifying assessee’s liability. Instead, the respective officer issued the impugned order dated 15.05.2020 informing that assessee was not eligible to apply under the scheme and that therefore the designated committee had decided to reject assessee’s declaration made on 30.12.2019. Assessee wanted this Court to not only quash the impugned order dated 15.05.2020 passed by the officer but also directed them to accept the declaration made by assessee in SVLDRS-1 on 30.12.2019 and to issue Discharge Certificate in SVLDRS-4. However , the officer contended that assessee lacked the eligibility to apply under the scheme. It was held that the designated authority could revisit the issue after issuance of Form SVLDRS-3 only in the circumstances set out in Section 128 r/w.Rule 6(6). If during the verification process contemplated by Rule 6, if the designated committee finds that the applicant is not eligible to make a declaration under Section 125 of the Act, the declaration ought to be returned or rejected at that stage itself. Having moved to the next stage, the designated committee cannot retrace its steps. If the impugned order is sustained, it would mean that the designated committee has been conferred with absolute power of review, when what has been conferred is only limited power of review, namely, the power to correct the arithmetical or clerical error. It cannot revisit the issue on merits, having once made the determination under Section 127(4) of the Finance (No.2) Act, 2019 r/w. Rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.Therefore, the designated committee did not have the jurisdiction to issue the impugned order.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

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