Case Note & Summary
The petitioner, Gautam Hospitality Private Limited, filed a writ petition under Article 226 of the Constitution of India challenging the rejection of its application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The rejection was communicated via an electronically generated form, FORM SVLDRS 1, stating that the amount of tax was not quantified before 30th June 2019 and that an investigation was ongoing. The petition had been pending for almost three years. On 11th March 2021, a coordinate bench had issued notice and directed the respondents to file a reply affidavit. However, no reply affidavit was filed. The Court noted that the tax amount was quantified in the show cause notice issued to the petitioner, and the mere pendency of an investigation does not preclude the application under the SVLDRS. The Court held that the rejection was not sustainable and directed the respondents to process the petitioner's application in accordance with the scheme. The petition was allowed, and rule was made absolute.
Headnote
A) Tax Law - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Section 125 of Finance Act, 2019 - Quantification of Tax - The issue was whether the rejection of the petitioner's application under the SVLDRS on the ground that the tax amount was not quantified before 30th June 2019 and investigation was pending was valid. The Court held that the tax amount was quantified in the show cause notice and the pending investigation does not bar the application. The Court allowed the petition and directed the respondents to process the application. (Paras 1-6)
Issue of Consideration
Whether the rejection of an application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on the ground that the amount of tax is not quantified before 30th June 2019 and investigation is pending is valid.
Final Decision
The Court allowed the petition, quashed the rejection, and directed the respondents to process the petitioner's application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in accordance with law.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 125 of Finance Act
- tax quantification
- pending investigation
- FORM SVLDRS 1
- rejection of application
- Article 226 of Constitution of India
Case Details
2024 LawText (BOM) (03) 25
Writ Petition No. 396 of 2021
G. S. Kulkarni, Firdosh P. Pooniwalla
Mr. Vipul Shah for the Petitioner, Mr. Satyaprakash Sharma for Respondent No.1
Gautam Hospitality Private Limited
The Principal Commissioner GST and Central Excise And Anr.
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Nature of Litigation
Writ petition challenging rejection of application under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
Remedy Sought
The petitioner sought to quash the rejection of its SVLDRS application and to direct the respondents to process the application.
Filing Reason
The petitioner's application under the SVLDRS was rejected on the ground that the tax amount was not quantified before 30th June 2019 and investigation was pending.
Previous Decisions
On 11th March 2021, a coordinate bench issued notice and directed the respondents to file a reply affidavit, but no reply was filed.
Issues
Whether the rejection of the SVLDRS application on the ground of non-quantification of tax before 30th June 2019 is valid.
Whether the pendency of an investigation bars the application under the SVLDRS.
Submissions/Arguments
The petitioner argued that the tax amount was quantified in the show cause notice and the pending investigation does not affect the application.
The respondents did not file a reply affidavit despite being directed to do so.
Ratio Decidendi
The tax amount is considered quantified if it is mentioned in a show cause notice, and the pendency of an investigation does not preclude the application under the SVLDRS. The rejection on such grounds is not sustainable.
Judgment Excerpts
This Writ Petition, under Article 226 of the Constitution of India, challenges the rejection of the Petitioner’s Application filed under Sabka Vishwas – (Legacy Dispute Resolution) Scheme, 2019 on the ground that the amount of tax is not quantified before 30th June 2019 and investigation is going on.
The Court held that the rejection was not sustainable and directed the respondents to process the petitioner's application.
Procedural History
The petition was filed in 2021. On 11th March 2021, a coordinate bench issued notice and directed the respondents to file a reply affidavit. No reply was filed. The petition was heard on 18th March 2024 and allowed.
Acts & Sections
- Constitution of India: Article 226
- Finance Act, 2019: Section 125
