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2020 (10) TMI 1034 - HC - Service TaxRejection of application under SVLDRS 1 - rejection on the ground that amount of penalty imposed had not been shown in Form SVLDRS 1, thus making it an incorrect declaration. - HELD THAT - On similar issue a Co-ordinate Bench has already disposed of a similar writ petition being PROLOY SEAL AND ANR., M/S. D.J. INFOSYSTEMS VERSUS THE UNION OF INDIA AND 3 ORS., THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS AND OTHERS 2020 (7) TMI 184 - GAUHATI HIGH COURT - Mr. Keyal also submits that by this order this Hon ble Court has remanded the matter back to the authorities concerned. The impugned order is set aside - the matter is remanded back to the authorities to reconsider the application/declaration furnished by the petitioner and passed appropriate orders thereon in terms of the scheme and the rules framed there under. If the authorities require a fresh declaration then they shall permit the petitioner to file such declaration afresh.
Issues:
1. Allegation of non-compliance with the Finance Act, 1994 by the petitioner resulting in a demand of ?1,89,87,833. 2. Imposition of penalty under Sections 77 and 78 of the Finance Act, 1994. 3. Appeal filed by the petitioner before the Customs, Excise & Service Tax Appellate Tribunal, Kolkata. 4. Introduction of the "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019" by the Government. 5. Rejection of the petitioner's application under the Scheme due to alleged incorrect declaration. Issue 1: The petitioner, an Assessee under the Finance Act, 1994, was issued a Show Cause Notice for non-compliance, leading to a demand of ?1,89,87,833. Despite filing a reply, the demand was confirmed by the authorities, along with imposition of penalties under Sections 77 and 78 of the Act. Issue 2: Challenging the Order-In-Original dated 14.03.2013, the petitioner appealed to the Customs, Excise & Service Tax Appellate Tribunal, Kolkata, which granted a stay on the penalty recovery. The matter remains pending before the Tribunal. Issue 3: The Government introduced the "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019" to settle pending cases related to Central Excise and Service Tax. The petitioner, eligible under the Scheme, filed a declaration seeking relief, which was rejected due to alleged incorrect declaration regarding penalty amount. Analysis: The rejection of the petitioner's application under the Scheme was challenged through a writ petition, questioning the violation of scheme rules. The Court, considering a similar case, set aside the rejection order and remanded the matter to authorities for reconsideration. The authorities were directed to review the petitioner's declaration and pass appropriate orders within two months, allowing for a fresh declaration if necessary. The writ petition was disposed of without costs. This detailed analysis covers the issues of non-compliance, penalty imposition, Tribunal appeal, the Legacy Dispute Resolution Scheme, and the rejection of the petitioner's application, providing a comprehensive understanding of the legal judgment.
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