Bombay HC restores SVLDRS Declaration Forms, remands for fresh decision by treating it as Valid Declarations under ‘Voluntary Disclosure’ Category [Read Order]

The Bombay High court has restored the SVLDRS Declaration Forms, remands for fresh decision by treating it as valid declarations under ‘voluntary disclosure’ category.

The petitioner, UCC Infrastructure filed an Electronic Declaration Form under SVLRDS-1 on CBEC website under ‘voluntary category’ and declared Rs.36,24,108/- as the amount of tax dues for the period 1st September, 2015 to 30th June, 2017. However, the respondent passed an order to the petitioner rejecting the said declaration on the ground that the petitioner was not eligible to opt for the said Scheme as the investigation against the petitioner had been initiated before they opted for the said Scheme. 

The petitioner protested against the said order and pointed out as to why the declaration form submitted by the petitioner could not have been rejected. The respondents rejected the application filed by the petitioner on the ground that the investigation was initiated against the petitioner and thus the petitioner was not eligible to file declaration under ‘voluntary category’.

The petitioner submitted that the investigation was started by the respondents by issuing summons much after the cut-off date and thus the declaration form submitted by the petitioner could not have been rejected on the ground that the investigation was initiated against the petitioner. He submits that the investigation initiated after the cut-off would be of no consequence and on such ground the declaration forms submitted by the petitioner could not have been rejected.

The division bench of Justice S.K. Modak and Justice R.D.Dhanuka took cognizance of the powers of the respondents under Section 129(2)(c) of the said Scheme which empowers the respondents to take an appropriate action against the petitioner, if within one year from the date of issuance of discharge certificate, if the respondents find any material particular in the declaration as false. In such circumstances, the respondents presume as if the declaration was never made and the proceedings under the applicable indirect tax enactment shall be instituted.

“The Declaration Forms filed by the petitioners are restored to file and are remanded to the respondent for taking a fresh decision on these two declaration forms filed by the petitioner by treating the same as valid declarations under the ‘voluntary disclosure’ category and thereafter grant the admissible relief to the petitioner. The respondents shall grant an opportunity of personal hearing to the petitioner by issuing seven days clear notice before the date of proposed hearing. The petitioner shall remain present at the time of hearing before the respondent no.3, without fail. The respondent shall pass a reasoned order, in accordance with the law within a period of eight weeks from the date of receipt of an authenticated copy of this judgment. The order that would be passed by the respondent, shall be communicated to the petitioner within one week from the date of passing such order,” the court said.

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