The Bombay High Court set aside the statement SVLDRS-3 as no opportunity of hearing was provided to the petitioner, Chinar Shipping & Infrastructure (India) Pvt. Ltd.
The Petitioner, Chinar Shipping & Infrastructure (India) Pvt. Ltd. questioned the propriety and validity of the statement in form SVLDRS-3 dated 19th February, 2020 praying to issue a writ or order setting aside the same with a further direction to allow declaration of petitioner in form SLVDRS-1 dated 28th December, 2019.
The petitioner company is engaged in providing services ‘Business Auxiliary Services’ and is registered with respondents under Service Tax Rules, 1994, and under Central Excise Goods and Services Tax Act, 2017 with effect from 1st July, 2017.
Petitioner with a view to avail benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, applied online under Litigation Category under sub-category show-cause notice involving Duty Pending making a declaration in Form SVLDRS-1 dated 28th December, 2019. In the declaration, the petitioner had referred to show-cause notice amount of Rs.9,27,39,336/-, pre-deposit amount as Rs.2,62,21,678/-, and revenue dues payable as per the scheme to be Rs. 2,01,47,991/-.
A declaration in Form No. SVLDRS-3 was issued on 19th February, 2020 by Designated Committee, referring to the amount payable by the Petitioner is Rs. 2,93,40,631.
The petitioners had requested for hearing, however, no communication had been received at their end for quite a long time and while the petitioners searched on the official website, they came to know that SLVDRS 2B was issued on 31st January, 2020, fixing hearing on 6th February, 2020.
According to the Petitioner, SVLDRS-2B Form cannot be downloaded. It is submitted that its intimation had not been received at the end of petitioners either on the registered ‘email id’ or on registered mobile via ‘SMS’. While this had been realized subsequent to 6th February, 2020, petitioner had made a personal representation before officers of Designated Committee explaining its position and requesting to adjust amounts of deposits, as referred to by the petitioner, having regard to the circular dated 12th December, 2019. However, the same was not to any avail.
The petition is being resisted on behalf of the respondents. It is being referred to that it is a lame excuse to claim that the petitioner had not been given notice of personal hearing through email or SMS. It is contended that notification regarding issuance of SVLDRS-2B is system generated service and while petitioner had received SVLDRS-2, it is difficult to believe that SVLDRS-2B form had not reached the petitioner. It is being contended that petitioner has not specifically come out as to when it came to know about SLVDRS-2B form.
The division bench of Justices Abhay Ahuja and Sunil P. Deshmukh deemed it appropriate that the petitioner may have an opportunity of hearing. We therefore, consider it appropriate to set aside the impugned statement SVLDRS-3 dated 19th February, 2020.
Therefore, the court held that the impugned declaration in the form of SVLDRS-3 issued by the Designated Committee on 19th February, 2020 is set aside restoring the proceedings before the authority. The concerned authority to give an opportunity of hearing to petitioner and decide the matter petition pursuant to Sabka Vishwas scheme.
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