Order Date: 24 August 2022

Facts-

• The petitioner, Sonjoli Construction is a proprietorship firm, a scheme under the title of Sabka Vikas Legacy Dispute Resolution Scheme, 2019 for voluntary disclosure was floated by the respondents. The petitioner deposited the due service tax by way of voluntary disclosure. The said application of the petitioner under Section 129(2) (c) of the Finance Act, 2019 has been rejected by the Joint Commissioner, CGST and Excise Duty Commissionerate, which is assailed in this writ petition.
• The application was rejected on the ground that an audit had been initiated and hence, the petitioner was not entitled to the benefit of the SVLDR Scheme. 
• Aggrieved, this writ is filed.

Issue-

• Whether denying the petitioner the opportunity to avail benefit under the SVLDR Scheme is justifiable?

Order-

• The Division Bench of Hon’ble High Court observed that Petitioner is not in a position to dispute the fact that the last date stipulated for initiating the investigation or audit making the applicant ineligible to apply under the Disclosure Scheme was 30.06.2019. It is not disputed that the notice for providing documents to conduct audit was issued to the petitioner well after 30.06.2019 to be specific on 26.12.2019.
• The Court relied on the Hon’ble Bombay High Court in the case of UCC Infrastructure Pvt. Ltd. vs. Union of India & Ors. wherein it was held that summons issued after the cut-off date of 30th June, 2019 could not be the ground for declaring the application filed by the petitioner under SVLRDS-1 ineligible.
• The Declaration Forms filed by the petitioners are directed restored and are remanded to the excise duty Commissionerate for taking a fresh decision on these two declaration forms filed by the petitioner by treating the same as valid declarations under the ‘voluntary disclosure’ category and thereafter grant the admissible relief to the petitioner.
• The Court held that the action of the respondents in initiating the enquiry and denying the petitioner the opportunity to avail benefit under the SVLDR Scheme is absolutely illegal and unjustified.
• Hence the writ petition is allowed.