The Court examined a challenge to a circular clarifying the application of the cut-off date under the Sabka Vishwas Scheme, 2019. The Court interpreted Rules 3 and definitions of amount in arrears under the Finance Act, 2013.
The writ petition was dismissed and the applications for interim relief and exemption were dismissed as they became infructuous.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 09.12.2019
NIDHI GUPTA ..... Petitioner Through: Mr. Bharat Bhushan with Ms. Nidhi Gupta, Advs.
Versus
UNION OF INDIA AND ANR. ..... Respondents Through: Mr.Farman Ali, Adv. with Mr.Prashant Rana, Adv. for Mr.Ravi Prakash, Adv. Ms.Manpreet Kaur, Adv. for R-1/UOI. Mr.Amit Bansal, Adv. with Mr.Aman Rewaria, Adv. for R-2.
CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE C.HARI SHANKAR
JUDGMENT
D.N. PATEL, CHIEF JUSTICE (Oral)
C.M.No.52721/2019 (exemptions)
Allowed, subject to all just exceptions.
W.P.(C) No.12917/2019
WP(C) No.12917/2019 Page 1 of 5
Annexure P-3. Counsel appearing for the petitioner has pointed out to us Rule 3 of the aforesaid Scheme, 2019 which reads as under:-
“3. Form of declaration under section 125 (1). - The declaration under section 125 shall be made electronically at https://cbic-gst.gov.in in Form SVLDRS-1 by the declarant ,on or before the 31st December, 2019.
(2) A separate declaration shall be filed for each case. Explanation.- For the purpose of this rule, a "case" means —
(a) a show cause notice, or one or more appeal arising out of such notice which is pending as on the 30th day of June, 2019; or
(b) an amount in arrears; or
(c) an enquiry or investigation or audit where the amount is quantified on or before the 30th day of June, 2019; or
(d) a voluntary disclosure.”
(Emphasis supplied)
WP(C) No.12917/2019 Page 2 of 5
mainly for the reason that looking to the aforesaid Rule 3 to be read with Section 121(c) of The Finance Act, 2013 , definition of “ amount in arrears ” which reads as under:-
under:-
“ (vii) Section 125(l)(a) excludes cases which are under appeal and where final hearing has taken place on or before 30th June, 2019 from the purview of the Scheme. Similar exclusion has been made applicable, mutatis mutandis, under Section 125(l)(c) to cases under adjudication. It is clarified that such cases, however, may still fall under the arrears category once the appellate or adjudication
WP(C) No.12917/2019 Page 3 of 5
order, as the case may be, is passed and has attained finality or appeal period is over, and other requirements under the Scheme are fulfilled.
(viii) Section 121 (c)(i) and (ii) define "an amount in arrears" as the amount of duty which is recoverable, inter, alia, on account of no appeal having been filed by the declarant against an order or order m appeal before the expiry of the period of time for filing of appeal or the order-in-appeal having attained finality. There may be situations where the taxpayer does not want to file an appeal even though the time period for filing of appeal is not over. It is clarified that in such cases, the taxpayer can file a declaration under the Scheme provided he gives in writing to the department that he will not file an appeal. This declaration shall be binding on the taxpayer.”
WP(C) No.12917/2019 Page 4 of 5
which are covered under Rules 3(b) & 3(c). This cut-off date has been clarified in a Circular dated 25.09.2019 which is annexure P-1.
CM APPLs. 52720/2019 (interim relief) & 52721/2019 (exemption)
CHIEF JUSTICE
C.HARI SHANKAR, J
DECEMBER 09, 2019 aa
WP(C) No.12917/2019 Page 5 of 5
2 issues framed by the court
Whether the notificational circular dated 25.09.2019 clarifies the application of the cut-off date under Rule 3 of the Sabka Vishwas Scheme, 2019.
Whether the provisions of the said circular violate the Scheme, 2019 or the Finance Act, 2013 regarding the definition of amount in arrears.
2 provisions across 2 enactments
Nidhi Gupta
Union of India
D.N. Patel
C.Hari Shankar
As recorded by the court registry
A petition under Article 226 of the Constitution asking a High Court to issue a writ against the State or a public authority in a civil matter.
Judgements on the same questions, provisions and authorities, from every court
