Case Note & Summary
The Petitioner, Kuber Health Food And Allied Services Pvt. Ltd., registered under the Finance Act, 1994 for service tax on Outdoor Catering Services and Manpower Supply Services. On 11 April 2018, the premises were visited by Intelligence Officers, and documents were called for. Summons were issued, and statements of authorized officers were recorded. On 16 April 2019, in the statement of Shri Vithal Sunder Nayak, the Petitioner admitted service tax liability for the years 2013-2014 to 2017-2018. The Petitioner paid Rs.20,08,662/- for 2013-2014, and the balance demand of Rs.1,39,58,752/- pertained to 2014-2015 to 2017-2018. The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) was introduced on 21 August 2019, with a cut-off date of quantification of demand on or before 30 June 2019. On 16 October 2019, a show cause notice was issued to the Petitioner, reproducing the quantification admitted during investigation and demanding Rs.1,50,37,871/- for the period 2014 to 2017 along with interest and penalty. The Petitioner applied under the SVLDR Scheme in Form SVLDRS-1, mentioning Rs.1,50,37,871/- as duty quantified, taken from the show cause notice. The Respondents issued Form SVLDRS-2 rejecting the application on the ground that quantification was post 30 June 2019. The Petitioner challenged this rejection. The Court considered whether the quantification was made before the cut-off date. The Petitioner argued that the quantification was admitted during investigation prior to 30 June 2019, and the show cause notice merely reproduced that admission. The Respondents contended that the quantification in the show cause notice was the relevant quantification. The Court held that the quantification of demand was made by the Petitioner during investigation on 16 April 2019, before the cut-off date. The show cause notice did not make a fresh quantification but only reproduced the admitted amount. Therefore, the Petitioner was eligible for the Scheme. The Court allowed the petition, set aside the rejection, and directed the Respondents to process the application in accordance with law.
Headnote
A) Service Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Eligibility - Quantification of Demand - The Petitioner admitted service tax liability during investigation prior to 30 June 2019, and the show cause notice issued after that date merely reproduced the admitted quantification. The Court held that the quantification of demand was made before the cut-off date, and the Petitioner is eligible for the Scheme. The rejection of the application was set aside. (Paras 1-9)
Issue of Consideration
Whether the Petitioner is eligible to avail the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, when the quantification of demand was admitted during investigation prior to 30 June 2019, but the show cause notice quantifying the demand was issued after that date.
Final Decision
The Court allowed the petition, set aside the rejection of the Petitioner's application under the SVLDR Scheme, and directed the Respondents to process the application in accordance with law.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- quantification of demand
- cut-off date 30 June 2019
- admission during investigation
- show cause notice
- eligibility
