Case Law Details
Munish Rajkumar Mahajan Vs Union of India (Bombay High Court)
This Court held that having regard to the objective of the scheme, in a case of this nature, a reasonable and pragmatic approach has to be adopted so that a declarant can avail the benefits of the scheme; a declarant who seeks benefit under the scheme cannot be put in a worse off condition than he was before making declaration under the scheme. That would defeat the very purpose of the scheme. In our view, the principles laid down by this Court in case of Jyoti Plastic Works Pvt. Ltd. (supra) would apply to the facts of this case. In this case, the facts are even better though the facts before this Court in case of Jyoti Plastic Works Pvt. Ltd. (supra). The respondent no.2 had already adverted to the show cause notice for the larger period and reply of petitioner and had determined tax dues which was the basis adopted by the petitioner rightly by filing the said SVLDRS-1 under the category ‘arrears’.
This Court in case of Morde Foods Pvt. Ltd. & Anr. (supra) after considering the reply to the question nos.5 and 6 of ‘Frequently Asked Questions’ and after adverting the judgment of this Court in case of Thought Blurb (supra) and Jyoti Plastic Works Pvt. Ltd. (supra) quashed and set aside the order passed by the authority and remanded back the matter to the authority to take a fresh decision in accordance with law. This Court in the said judgment held that while the declarant would not be eligible under the litigation category but once the order in appeal is passed (which presumably is post 30.06.2019), the declarant can file a declaration under the arrears category provided the appeal has attained finality or further appeal period is over or that the declarant gives an undertaking that he would not file any further appeal.
It is held that final hearing of the appeal on or before 30th day of June, 2019 is not the only decisive factor in determining eligibility. According to the Board, post 30.06.2019, the declarant can still make a declaration under the arrears category once the order in appeal is passed whereby the matter has attained finality or the declarant gives an undertaking that he would not file any further appeal or the period for filing further appeal is over. In the facts of this case also, the petitioner did not file any appeal against the said assessment order. The said assessment order has thus attained finality crystallizing the tax dues of the petitioner. The principles laid down by this Court in case of Morde Foods Pvt. Ltd. & Anr. (supra) apply to the facts of this case.
This Court in case of Thought Blurb (supra) has considered the entire scheme SVLDRS threadbare and has also considered the objects, purpose and intent for framing the said scheme by the Central Government. This Court has considered the declaration made by the Hon’ble Finance Minister clearly deducible from the statement of object and reasons, the scheme as one time measure for liquidation of past disputes of central excise and service tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. The basic thrust of the scheme is to unload the baggage of pending litigations centering around service tax and excise duty. The focus is to unload this baggage of pre-GST regime and allow business to move ahead.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
