Case Note & Summary
The petitioner, Hindustan Petroleum Corporation Ltd., a Government of India enterprise, filed a writ petition under Article 226 of the Constitution of India seeking restoration of its SVLDRS-1 declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019. The Scheme was introduced by the Central Government for resolution of legacy disputes under Central Excise and Service Tax laws pending as on 30/06/2019. The respondents had filed Central Excise Writ Petition No. 60 of 2018 against the petitioner, which was pending before the Bombay High Court. On 27/12/2019, the petitioner opted for the Scheme by filing the necessary declaration. The Designated Committee issued an estimate of the amount payable, but the petitioner failed to pay 50% of the estimated amount within the stipulated time, leading to rejection of the declaration. The petitioner contended that the rejection was technical and that the Scheme being a beneficial legislation, the declaration should be restored. The respondents opposed the petition, arguing that the Scheme had lapsed and no further declarations could be processed. The Court, after hearing both sides, held that the rejection was purely technical and that the petitioner should not be penalized for non-payment of the 50% amount. The Court directed the respondents to restore the SVLDRS-1 declaration, treat it as still in existence, consider it on merits, and issue the discharge certificate in Form SVLDRS-4. The petition was allowed with no order as to costs.
Headnote
A) Indirect Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - SVLDRS-1 Declaration - Technical Rejection - The petitioner filed SVLDRS-1 declaration under the Scheme for settlement of a pending Central Excise dispute. The Designated Committee issued an estimate but the petitioner failed to pay 50% of the amount within the stipulated time, leading to rejection. The Court held that the rejection was technical and the Scheme being a beneficial legislation, the declaration should be restored and considered on merits, directing the respondents to treat the declaration as still in existence and issue discharge certificate in Form SVLDRS-4. (Paras 1-13)
Issue of Consideration
Whether the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 was justified in rejecting the petitioner's SVLDRS-1 declaration on the ground that the petitioner had not paid 50% of the amount indicated in the estimate, and whether the petitioner is entitled to restoration of the declaration and issuance of discharge certificate.
Final Decision
The Court allowed the petition, directing the respondents to restore the SVLDRS-1 declaration filed by the petitioner, treat it as still in existence, consider it on merits, and issue the discharge certificate in Form SVLDRS-4. No order as to costs.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
- SVLDRS-1 declaration
- technical rejection
- non-payment of 50% amount
- restoration of declaration
- discharge certificate
- SVLDRS-4
Case Details
2022 LawText (BOM) (01) 74
WRIT PETITION (L) NO. 5066 OF 2020
R. D. Dhanuka, S. M. Modak
Ms. Padmavati Patil a/w Mr. Kiran Patil i/by CENEX service for Petitioner, Mr. Jitendra B. Mishra for Respondents
Hindustan Petroleum Corporation Ltd.
Union of India, Central Board of Indirect Taxes and Customs, Designated Committee under SVLDR Scheme, Commissioner of CGST & Central Excise
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking restoration of SVLDRS-1 declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019.
Remedy Sought
Petitioner sought a writ of mandamus for restoring the SVLDRS-1 declaration and directing the respondents to consider it on merits and issue discharge certificate in Form SVLDRS-4.
Filing Reason
The petitioner's SVLDRS-1 declaration was rejected by the Designated Committee on the ground that the petitioner had not paid 50% of the amount indicated in the estimate within the stipulated time.
Previous Decisions
The respondents had filed Central Excise Writ Petition No. 60 of 2018 against the petitioner, which was pending before the High Court.
Issues
Whether the rejection of the SVLDRS-1 declaration on the ground of non-payment of 50% of the estimated amount was justified.
Whether the petitioner is entitled to restoration of the declaration and issuance of discharge certificate under the Scheme.
Submissions/Arguments
Petitioner argued that the rejection was technical and the Scheme being a beneficial legislation, the declaration should be restored and considered on merits.
Respondents argued that the Scheme had lapsed and no further declarations could be processed.
Ratio Decidendi
The rejection of the SVLDRS-1 declaration was purely technical due to non-payment of 50% of the estimated amount. The Scheme being a beneficial legislation, the declaration should be restored and considered on merits, and the respondents should issue the discharge certificate in Form SVLDRS-4.
Judgment Excerpts
By this petition filed under Article 226 of the Constitution of India, the Petitioner has prayed for a writ of mandamus for restoring the SVLDRS-1 declaration filed by the Petitioner and consider the same on merit, as if the said scheme is still in existence, and regularize the same by issuing necessary discharge certificate in Form SVLDRS-4.
The Central Government has introduced 'Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019' which was applicable for old cases, i.e. pending cases as on 30/06/2019, under Central Excise and Service Tax laws.
Procedural History
The respondents filed Central Excise Writ Petition No. 60 of 2018 against the petitioner, which was pending before the High Court. On 27/12/2019, the petitioner opted for the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 by filing SVLDRS-1 declaration. The Designated Committee issued an estimate, but the petitioner failed to pay 50% of the amount within the stipulated time, leading to rejection. The petitioner then filed the present writ petition seeking restoration.
Acts & Sections
- Constitution of India: Article 226
- Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019:
