Gauhati HC in the case of Assam Cricket Association Versus The Union of India

Case Covered:

Assam Cricket Association

Versus

The Union of India

Facts of the Case:

The petitioner Assam Cricket Association is an assessee under the Finance Act, 1994 as regards their liability to pay service tax. Without going into the detailed facts, it would suffice to take note of that for the period 2009-2014, that certain conclusion was arrived at against the petitioner that the required amount of service tax was not paid by them. As a consequence thereof, by the order dated 04.09.2017 of the Commissioner GST and Central Excise, Guwahati a penalty of Rs.11,48,82,644.00 (Rupees Eleven Crore Forty-Eight Lakhs Eighty Two Thousand Six Hundred Forty-Four) was imposed on the petitioner under the 1st Proviso to Section 78 of the Finance Act, 1994. Against such levy and imposition of penalty, the petitioner preferred an appeal before the Custom, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata. In the appeal, the mandatory deposit of 75% of the levied amount was also paid by the petitioner.

During the pendency of the appeal, a scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ( in short Scheme 2019) was introduced under Chapter-V of the Finance Act, 1994. As provided in Section 124(1)(a)(ii) of the Finance Act 1994, amongst the various other reliefs that are available, an assessee is also entitled to relief under the scheme up to 50% of the tax dues if the amount due is more than Rs.50 lakhs.

Observations of the Court:

In the aforesaid circumstance, it is an agreed position of the parties that the petitioner may make an application to the appropriate respondent authority to consider the claim of benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by allowing the petitioner to make necessary correction in the information provided as regards the earlier penalty imposed on them. It is further agreed that upon such an application being made, the authorities would pass an appropriate order thereof as per their discretion.

The decision of the Court:

In view of such agreement, this petition stands disposed of by requiring the petitioner to submit an application before the respondent authorities for correction to be made in the information provided in the Form SVLDRS-1 as regards the penalty imposed and upon such application being made, the respondent authorities would pass a reasoned speaking order thereon. The requirement of submitting an application be made within a period of 15 days from obtaining the certified copy of the order and upon receiving the application, the respondent shall pass an order on the same within a period of 2 months from the date of receipt of the application. 

It is further provided that the earlier observation in this order as regards the benefit under Section 124(1)(a)(ii) shall not limit the claim of the petitioner to a benefit under that provision alone and if the petitioner is entitled to any other benefit, the petitioner is at liberty to make such claim.

The writ petition is accordingly disposed of.

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