9911796707
TMI Blog2025 (5) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 u/s. 87 of Finance Act, 1994 at Annexure A raising the demand of Rs. 1,35,23,617/- (Rs. One Crore Thirty Five Lakhs Twenty Three Thousand Six Hundred and Seventeen Rupees Only); c) In the alternatively this Hon'ble Court may kindly be pleased to remand back the matter to the respondent No. 2 to consider the submissions of the petitioner and grant the petitioner an opportunity of hearing; d) pending the hearing and final disposal of this petition, this Hon'ble Court may be pleased to direct the respondent No. 2 to stay the recovery proceedings pursuant to the Notice issued dated 31.03.2022 u/s. 87 of Finance Act, 1944 at Annexure-A; e) Any other and further relief deemed just and proper be granted in the interest of justice; f) Provide for the cost of this petition." 3. Brief facts of the case are as under: 3.1 The petitioner is a Transport Agency and is engaged in the business of courier. 3.2 It is the case of the petitioner that the Government has announced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereinafter to be referred to as SVLDRS in accordance with the Finance (No. 2) Act, 2019. 3.3 The petitioner-Firm has made a voluntary disclosure for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the petitioner submitted that in view of death of one of the partners of the petitioner-Firm, who had filed SVLDRS-1, the petitioner could not pay the balance amount as per SVLDRS-3 issued on 31.12.2019 before the due date which was extended upto 30.06.2020. It was submitted that the petitioner has filed an additional affidavit stating that the petitioner is ready and willing to pay the remaining amount of Rs. 29,56,239/-. It was submitted that the respondents have already attached the current account of the petitioner in ICICI Bank where there is credit balance of Rs. 30,12,750.30 Crore. It was further submitted that the petitioner is also, ready and willing to pay interest @ 9% per annum amounting to Rs. 29,56,239/- from 01.07.2020 till the amount is realized by the respondent. 5. On the other hand, learned advocate Ms. Sancheti for the respondent submitted that the petitioner has failed to pay amount within the prescribed time limit of the SVLDRS and therefore, permitting the petitioner to pay amount with interest would result into extending the Scheme which is contrary to the decision of the Hon'ble Apex Court in case of Yashi Constructions vs. Union of India reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e DRC-03 dated 11.04.2022 as informed by the petitioner vide letter dated 11.04.2022. 12. It is submitted that garnishee Notice dated 02.05.2022 issued to the one of the customer of the petitioner is legally correct in terms of section 87 as mandated under section 110 of the Finance Act,1994. 13. It is submitted that Para 10 (j) of the Circular No. 1071/4/2019CX.8 dated 27.08.2019 issued by the Central Board of Indirect Tax and Customs says that section 127 (5) of the scheme provides that the declarant shall pay the amount indicated in the Statement issued by the Designated Committee within a period of thirty days, if the declarant does not pay the amount within the stipulated time, due to any reasons, the declaration will be treated as lapsed. The department has also clarified the said issue in FAQ released in respect of SVLDRS; the relevant Question No.52 is as under; "Question No.52 what happens if I do not make the payment of the amount specified in the statement within 30 days of its issue? Ans. The declaration shall be treated as lapsed and benefits of the Scheme will no longer be available. Therefore, the Notice dated 31.03.2022 was issued to the petitioner in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 Crore to settle his case and clause (j) of para 10 of the Circular provides that as per section 127 (5) of the Scheme, if the declarant does not pay amount within the stipulated time due to any reason, declaration will be treated as lapse. Therefore, it appears that case of the petitioner is squarely covered by the provision of section 127 (5) of the Act however, the clarification issued by the Circular No. 1071 in para 10 (j) is not found in SVLDRS Scheme. There is no time limit prescribed under the Scheme or there is no prohibition prescribed under the Scheme for making the payment by the petitioner more particularly, when the respondents did not refuse to accept the part payment of Rs. 10 Lakh on 11.04.2022 paid by the petitioner in respect of SVLDRS Scheme,2019 which is through GST DRC-03. 13. The petitioner has filed an additional affidavit making following averments: "2. The present additional affidavit is filed for a limited purpose of placing on record the Letters dated 02.05.2022 and 01.08.2022 each, issued by Respondent No. 2 under section 87 (b) (i) of the Finance Act,1994 to the Branch Manager of ICICI Bank requesting attachment of Current Account No. 349605500033 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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