Case Note & Summary
The petitioner, Evershine Enterprises, filed a writ petition before the Bombay High Court seeking to quash the SVLDRS-3 statement issued by the respondents on 26 December 2019 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner contended that the amounts already recovered from it or pre-deposited by it were not adjusted while determining the amount payable under the scheme. The background facts reveal that on 13 June 2013, the petitioner was served with a show-cause notice cum demand notice proposing a service tax demand of Rs.2,25,31,804/- for the period 2008-2009 to 2011-2012. The petitioner responded on 9 December 2013, pointing out that a major portion of the demand had already been remitted before the issuance of the notice. Subsequently, another show-cause notice cum demand notice dated 28 March 2014 was issued demanding service tax of Rs.17,04,400/- along with interest and penalty for the period 1 April 2012 to 31 March 2013. On 27 March 2018, the 3rd respondent passed an Order-in-Original confirming the demands proposed in both show-cause notices. The petitioner then sought to avail the SVLDRS scheme, but the SVLDRS-3 statement did not account for the amounts already paid. The court, after hearing the parties, issued rule and made it returnable immediately. The court quashed the SVLDRS-3 statement and directed the respondents to recompute the amount payable after adjusting the amounts already recovered or pre-deposited by the petitioner. The court also directed that the petitioner be given a fresh opportunity to pay the recomputed amount within four weeks, and upon such payment, the respondents were to issue the necessary discharge certificate.
Headnote
A) Service Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Adjustment of Pre-deposits - The petitioner challenged the SVLDRS-3 statement dated 26 December 2019 on the ground that amounts already recovered or pre-deposited were not adjusted in determining the payable amount. The court held that such adjustment is necessary and quashed the statement, directing the respondents to recompute the amount after adjusting the pre-deposits and recovered amounts. (Paras 3-6) B) Service Tax - Show Cause Notice - Confirmation of Demand - The petitioner was served with show-cause notices dated 13 June 2013 and 28 March 2014 demanding service tax. The Order-in-Original dated 27 March 2018 confirmed the demands. The petitioner had already remitted a major portion before the first notice. (Paras 4-5)
Issue of Consideration
Whether the amounts already recovered from the petitioner or pre-deposited by the petitioner ought to have been adjusted in determining the amount payable under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and whether the SVLDRS-3 statement issued without such adjustment is liable to be quashed.
Final Decision
The court quashed the SVLDRS-3 statement dated 26 December 2019 and directed the respondents to recompute the amount payable after adjusting the amounts already recovered or pre-deposited by the petitioner. The petitioner was given four weeks to pay the recomputed amount, and upon payment, the respondents were to issue the necessary discharge certificate.
Law Points
- Adjustment of pre-deposits
- SVLDRS Scheme
- Service Tax
- Natural Justice
- Recovery
