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2023 (9) TMI 1287 - HC - Service TaxEligibility to claim benefit of SVDRS - Valuation under SVLDR Scheme - quantification of the demand on/or before 30th June, 2019, being the cut-off date specified in the SVLDR Scheme - HELD THAT:- Clause (e) of Section 125(1) of the SVLDR Scheme provides for disqualification of a person who has been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has been quantified on/or before 30th June, 2019. In the present case, the Petitioner was subjected to audit vide letter dated 10th July, 2018 issued by Respondent No. 4. However, the amount of duty involved in the said audit was not quantified on/or before 30th June, 2019. There is no quantification of duty by the Petitioner in the letter dated 27th May, 2019. This is fortified by a letter dated 24th October, 2019 addressed by the Additional Commissioner to the Petitioner wherein there is further reference to letter dated 3rd October, 2019 and it is stated that the Petitioner has not agreed to the payment of tax/duty along with interest and penalty. These two letters of 3rd October, 2019 and 24th October, 2019 are addressed much after the cutoff date of 30th June, 2019. The quantification of duty happened only on the issuance of the show cause notice dated 14th January, 2020 which also falls after the cut-off date of 30th June, 2019. The Petitioner was thus disqualified as per clause (e) of Section 125(1) of SVLDR Scheme to make a declaration since in the Petitioner’s case there has not been a quantification before the cut-off date. Section 121(r) defines “quantified” to mean a written communication of the amount of duty payable under the indirect tax enactment. In the instant case, the letter of the Petitioner dated 27th May, 2019 cannot be read to mean a communication of the amount of duty payable since there is no such statement in the said letter or its annexure. Bombay High Court in the case of Thought Blurb V/s. Union of India [2020 (10) TMI 1135 - BOMBAY HIGH COURT]on the issue of opportunity of being heard. In the said case inspite of there being quantification of demand, the declaration under SVLDR Scheme was rejected without giving an opportunity of hearing. It was on these facts that the High Court observed that summary rejection of an application without affording any opportunity of hearing would be in violation of the principles of natural justice. The facts of the Petitioner before us are different. There is no quantification at all before the cut-off date and therefore even if an opportunity of hearing was given to the Petitioner, it would not have made any difference as to the eligibility under the SVLDR Scheme - It is settled position that a decision has to be read in the context of facts of that case and one cannot read the same dehors the facts. Therefore, for more than one reason the decision in the case of Thought Blurb is not applicable. SVLDR Scheme is a scheme aimed at liquidating legacy cases locked up in litigation at various forums. However, it does mean that the scheme should be interpreted in a way to make a disqualified person qualified to avail the benefits of the scheme, though such a scheme is in public interest inasmuch as the government can collect taxes immediately, pendency in courts gets reduced and the assessee gets relieved from uncertainty, penalties, etc. The entry into the scheme is to be interpreted strictly without doing any violence to the scheme. Any other interpretation in the garb of beneficial legislation would amount to giving the benefit of the scheme to those who are expressly not qualified. Petition dismissed.
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