Bombay High Court restores the SVLDRS Declaration Forms and remands the case for a new ruling, accepting them as valid declarations under the ‘Voluntary Disclosure’ Category

The Bombay High court has restored the SVLDRS Declaration Forms, remands for fresh decision by treating it as valid declarations under ‘voluntary disclosure’ category.

The petitioner, UCC Infrastructure filed an Electronic Declaration Form under SVLRDS-1 on CBEC website under ‘voluntary category’ and declared Rs.36,24,108/- as the amount of tax dues for the period 1st September, 2015 to 30th June, 2017. However, the respondent passed an order to the petitioner rejecting the said declaration on the ground that the petitioner was not eligible to opt for the said Scheme as the investigation against the petitioner had been initiated before they opted for the said Scheme.

The petitioner objected to the ruling, claiming that the declaration form supplied by the petitioner could not have been rejected. The petitioner’s application was denied by the respondents on the grounds that the petitioner had been subjected to an inquiry and so was not entitled to file a declaration under the ‘voluntary category.’

The petitioner argued that the respondents began their investigation by issuing summonses well after the cut-off date, and so the petitioner’s declaration form could not have been rejected on the basis that the petitioner was the subject of an investigation. He claims that any investigation started after the deadline would be irrelevant, and therefore the petitioner’s declaration forms could not have been rejected on this basis.

The respondents’ powers under Section 129(2)(c) of the said Scheme, which empowers the respondents to take appropriate action against the petitioner if the respondents find any material particular in the declaration to be false within one year of the issuance of the discharge certificate, were taken into consideration by the division bench of Justice S.K. Modak and Justice R.D.Dhanuka. In such cases, the respondents will proceed as if the declaration was never made, and procedures will be brought under the applicable indirect tax enactment.

“The petitioners’ Declaration Forms are reinstated and remanded to the respondent for a new determination on these two declaration forms filed by the petitioner, treating them as legitimate declarations under the ‘voluntary disclosure’ category, and then granting the petitioner the acceptable remedy.” The respondents must provide the petitioner with a personal hearing opportunity by giving the petitioner seven days’ notice prior to the proposed hearing date. The petitioner must be present at all times during the hearing before respondent no. 3. Within eight weeks after receipt of an authenticated copy of this judgement, the respondent shall provide a reasoned order in line with the law. The respondent’s order must be informed to the petitioner within one week of the date of the respondent’s order, according to the court.

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