2021 (9) TMI 522 - ALLAHABAD HIGH COURT - Central Excise

Head Note / Extract:
Rejection of declaration by the petitioner on SVLDRS-1 - seeking settlement of dispute under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - short payment of Central Excise duty against shortage of stock - CBIC Circular No. 1071/4/2019-CX.8, dated 27.8.2019 - HELD THAT:- In the present case, Section 133 of the Scheme is pari materia (in material parts) to Section 119(1) of the Income Tax Act, 1961. Under clause 10(g) of Circular issued by the CBIC under Section 133 of the Scheme, the CBIC had forsaken the power it wielded, to its own advantage, under the Scheme. Thus, it waived that advantage and relaxed the rigor of law - to make the Scheme more purposeful and successful by maximizing amicable/consented resolution of legacy disputes, under all indirect taxation enactments, in the context of the imminent enforcement of the G.S.T. Regime, at the relevant time. That being the emphasis laid by the CBIC, it clearly sought to maximize the number and quantum of settlements under the Scheme. The CBIC has only clarified the meaning to be given to the word 'quantified' used under the Scheme - to include thereunder any duty liability admitted (in writing) by a person (during an enquiry or investigation) - as a 'written communication' spoken of under Section 121(r) of the Scheme. Also, ₹ 45,38,231/- is the exact amount ‘quantified’ while issuing the subsequent show-cause-notice dated 06.09.2019. The reasoning given by the Designated Committee in the impugned order runs contrary to law. The Designated Committee was obligated to deal with the declaration filed by the petitioner, on merits. No discretion was vested in the Designated Committee to take a different view. Even though the Circular has not been referred to or dealt by the Designated Committee, by virtue of the clear language of Section 133 of the Scheme, it was further obligated to necessarily act in accordance with that law. The impugned order is set aside. In absence of any other dispute or objection, the matter is remitted to the Designated Committee to issue the necessary SVLDRS-3, within a period of thirty days from today - Petition allowed by way of remand.