An enquiry or investigation or audit post 30.06.2019 would not act as a bar to filing of declaration under the voluntary disclosure category. Respondent was not justified in rejecting the declaration of the petitioner on the ground that petitioner was not eligible to file declaration under the category of under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
SVLDR Scheme, 2019 – Voluntary Disclosure –-- The petitioner sought quashing of order dated 29.01.2020 passed by the designated committee i.e., respondent No.4 rejecting the declaration of the petitioner dated 26.12.2019 under the SVLDR Scheme, 2019. The petitioner admitted service tax liability of Rs. 94.26 lacs for the period from 2015-16 upto 30.06.2017 and filed declaration under the SVLDR scheme on 26.12.2019, under the category of voluntary disclosure. The same was rejected on 29.01.2020 on the ground of ineligibility, with the remarks that enquiry was initiated on 19.12.2019 whereafter petitioner had filed declaration on 26.12.2019. Since the declaration was made after initiation of enquiry, as such, it was not eligible declaration under the category of voluntary disclosure and accordingly the declaration was rejected in terms of section 125(1)(f) of the Finance (No.2) Act, 2019. The petitioner submitted that he was issued summons under section 70 and the same would be construed to be one under the CGST Act. The initiation of enquiry was not under the Finance Act, 1994 dealing with service tax but under the CGST Act. Further, he was issued summons on 19.12.2019, whereas in the scheme 30.06.2019 is the cut-off date for determination of eligibility of a declarant under the scheme. The court observed that as per provisions if an enquiry or investigation or audit was initiated on or before 30.06.2019 then such a person would not be eligible to make a declaration under the voluntary disclosure category.
Held that:- The Hon’ble High Court set aside and quash the order dated 29.01.2020 and remanded the matter back to respondent No.4 for taking a fresh decision on the declaration filed by the petitioner on 26.12.2019 treating the same as a valid declaration under the voluntary disclosure category, within a period of eight weeks.
An enquiry or investigation or audit post 30.06.2019 would not act as a bar to filing of declaration under the voluntary disclosure category. Respondent was not justified in rejecting the declaration of the petitioner on the ground that petitioner was not eligible to file declaration under the category of under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
SVLDR Scheme, 2019 – Voluntary Disclosure –-- The petitioner sought quashing of order dated 29.01.2020 passed by the designated committee i.e., respondent No.4 rejecting the declaration of the petitioner dated 26.12.2019 under the SVLDR Scheme, 2019. The petitioner admitted service tax liability of Rs. 94.26 lacs for the period from 2015-16 upto 30.06.2017 and filed declaration under the SVLDR scheme on 26.12.2019, under the category of voluntary disclosure. The same was rejected on 29.01.2020 on the ground of ineligibility, with the remarks that enquiry was initiated on 19.12.2019 whereafter petitioner had filed declaration on 26.12.2019. Since the declaration was made after initiation of enquiry, as such, it was not eligible declaration under the category of voluntary disclosure and accordingly the declaration was rejected in terms of section 125(1)(f) of the Finance (No.2) Act, 2019. The petitioner submitted that he was issued summons under section 70 and the same would be construed to be one under the CGST Act. The initiation of enquiry was not under the Finance Act, 1994 dealing with service tax but under the CGST Act. Further, he was issued summons on 19.12.2019, whereas in the scheme 30.06.2019 is the cut-off date for determination of eligibility of a declarant under the scheme. The court observed that as per provisions if an enquiry or investigation or audit was initiated on or before 30.06.2019 then such a person would not be eligible to make a declaration under the voluntary disclosure category.
Held that:- The Hon’ble High Court set aside and quash the order dated 29.01.2020 and remanded the matter back to respondent No.4 for taking a fresh decision on the declaration filed by the petitioner on 26.12.2019 treating the same as a valid declaration under the voluntary disclosure category, within a period of eight weeks.