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TMI Blog2023 (1) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... V of Finance (No.2) Act, 2019. The aforesaid scheme came into force on 01.09.2019. The last date for filing application was to expire on 31.12.2019. However, the last date was later extended to 15.01.2020. The petitioner thus filed the above application on 14.01.2020. 3. The petitioner had Input Tax credit that was lying unutilized in its CENVAT Account under CENVAT Credit Rules, 2004 for a sum of Rs. 160,75,20,741/- as on 30.06.2017. The petitioner managed to transition the aforesaid credit under the new regime in terms of Section 140 of CGST Act, 2017, effective from 01.07.2017 by filing Form GST Tran-I under Section 140 of the CGST Act, 2017. A dispute arose whether the petitioner was indeed entitled to the aforesaid credit under CENVAT Credit Rules, 2004. 4. Under Section 125 (1)(e) of Chapter V of Finance Act (No.2) Act, 2019, a person is not eligible to make declaration who has been subjected to an enquiry or investigation or audit where the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th date of June, 2019. Section 125(1)(e) of Chapter (No.2) Act, 2019 of the Sabka Vishwas (Legacy Dispute Resolution) Schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o submit soft copy of worksheet." 7. Thereafter by another communication dated 27.12.2018, the respondents have confirmed that the petitioner had reversed a sum of Rs. 8,35,48,284/- in their GSTR-3B return filed on 20.12.2018. Hence, the petitioner was called upon to reverse the balance of Rs. 8,85,57,568/- (Rs.17,21,05,852/- - Rs. 8,35,48,284/-). 8. On 26.02.2019, the petitioner reversed the further sum of Rs. 3,50,49,747/-. Thus, in all, the petitioner has reversed a sum of Rs. 11,85,98,031/- (Rs.8,35,48,284/- + Rs. 3,50,49,747/-) out of Rs. 17,21,05,852/-. This has been quantified on the communication of the 3rd respondent. Therefore, the balance to be paid by the petitioner was only Rs. 5,35,07,821/- (Rs.17,21,05,852/- - Rs. 11,85,97,989/-). 9. Meanwhile, with the announcement of the aforesaid SVLDR Scheme, the petitioner filed Form SVLDRS -1 on 14.01.2020. The petitioner had filed the case under the investigation, enquiry or audit category. It has been rejected on the same date, being the last date for settling the dispute under the aforesaid Scheme. 10. The learned counsel for the petitioner has placed reliance on the decision of the High Court of Jharkhand at Ranchi in U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme 2019, r/w Section 127 of the said Act. 16. A reading of the communication dated 17.12.2018 of the 3rd respondent merely indicates there was no final quantification of the amount before 30.06.2019. To be eligible, the amount of duty should have been quantified on or before 30.06.2019. The petitioner could have approached the Designated Authority under the Scheme only if there was a proper quantification of duty on or before 30.06.2019. 17. Letter dated 17.12.2018 bearing C.No.III/10/41/2018-C7 G2-Misc. is merely a communication asking the petitioner to update the workings in the worksheet, which was already sent on 04.12.2018 and to submit the same. It is pursuant to the aforesaid letter, a subsequent communication was issued on 27.12.2018 to the petitioner. 18. A Show Cause Notice was issued to the petitioner in SCN No.4/2020-(ADC) dated 19.02.2020 was issued to the petitioner within the period of 35 days from 14.01.2020 the date of the declaration filed by the petitioner in Form SVLDRS-1 demanding a sum of Rs. 31,23,18,218 as detailed below:- S.No. Description of the issue in the Impugned SCN Tax Demand 1 Cenvat Credit availed without any document and availment of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (1) Subject to the conditions specified in sub-section (2), the relief available to a declarant under this Scheme shall be calculated as follows:- (a)........ (b)........... (c ) ....... (d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is- (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; 135. For clear understanding of cases where there is quantification before 30.06.2019 in the case of a declarant where an enquiry or investigation was pending, the following table given below:- ENQUIRY OR INVESTIGATION OR AUDIT 125. (1) All persons shall be eligible to make a declaration under this Scheme except the following, namely:- (e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019; Definition Tax Due Relief 121. In this Scheme, unless the context otherwise requires,- (g)"audit" means any scrutiny, verificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the person during enquiry, investigation or audit or audit report etc. However, if enquiry, Investigation or Audit is over, against an assessee, there is no question of availability SVLDRs' 2019. 145. In other words, during the course of enquiry investigation or audit, a person can file a Declaration under SVLDR, 2019 provided there is a proper quantification of tax liability on or before 30.06.2019. However, mere filing of a Declaration ipso facto will not mean that the enquiry, investigation or audit has to be stopped. If the amount quantified is correct, such quantification can be accepted. However, if enquiry, investigation or audit is complete, where there is no quantification, there is no scope for filing Declaration. 146. Thus, "Voluntary Disclosure" is not permissible in view of exclusion in Section 125(f) after a person has been subjected to an "Enquiry", "Investigation", or "Audit" or where having filed returns under the indirect tax enactment, amount payable in it has not been paid. If returns were filed after 30.06.2019 also benefit is not available. Thus, the respective petitioners are prima facie not entitled to any relief if there was quantification after 30. ..... 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