Facts of the Case

The petitioner, M/s Adarshbandhu Construction Private Limited, approached the Patna High Court challenging the Order-in-Appeal dated 30.05.2022, whereby the Commissioner (Appeals), Customs, Central Goods & Service Tax and Central Excise affirmed the Order-in-Original confirming the demand of service tax along with interest and penalty. The petitioner also sought a direction to the authorities for issuance of Form SVLDRS-4 (Discharge Certificate) for final settlement of tax dues under Section 127 of the Finance (No. 2) Act, 2019 read with Rule 9 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Issues Involved

  1. Whether the writ petition was maintainable when the impugned order was appealable under the statutory provisions.
  2. Whether the petitioner should be permitted to avail the statutory appellate remedy despite the issue of limitation.
  3. Whether the petitioner was entitled to seek issuance of Form SVLDRS-4 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Petitioner’s Arguments

  • The petitioner challenged the validity of the Order-in-Appeal affirming the service tax demand with interest and penalty.
  • The petitioner sought quashing of the impugned appellate order.
  • The petitioner further prayed for issuance of Form SVLDRS-4 for complete and final settlement of tax dues under Section 127 of the Finance (No. 2) Act, 2019 read with Rule 9 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Respondent’s Arguments

The respondents contended that the impugned order was statutorily appealable, and therefore the petitioner had an effective alternative remedy available under law.

Court Order / Findings

The Patna High Court observed that the impugned Order-in-Appeal dated 30.05.2022 was appealable under the statutory provisions. Accordingly, the Court:

  • Permitted the petitioner to withdraw the writ petition with liberty to file the statutory appeal within four weeks.
  • Directed that if such appeal is filed within four weeks, the question of limitation shall not come in the way of adjudication on merits.
  • Directed the Appellate Authority to provide opportunity to both parties to place all relevant documents on record.
  • Directed the petitioner to cooperate with the proceedings and avoid unnecessary adjournments.
  • Directed the Appellate Authority to decide the appeal on merits following the principles of natural justice.
  • Directed that a reasoned and speaking order be passed.
  • Reserved liberty to the parties to avail any other remedies available under law.
  • Expressly clarified that the High Court had not expressed any opinion on the merits of the dispute.
  • Disposed of the writ petition along with all pending interlocutory applications.

Important Clarification

  • Availability of an effective statutory appellate remedy is a significant factor for the High Court while exercising writ jurisdiction.
  • Filing the statutory appeal within the time granted by the High Court protects the petitioner from objection regarding limitation.
  • The High Court did not adjudicate upon the merits of the tax dispute or the entitlement to benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
  • The Appellate Authority is required to pass a reasoned order after following the principles of natural justice.

Sections Involved

  • Section 127 of the Finance (No. 2) Act, 2019
  • Rule 9 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
  • Article 226 of the Constitution of India (Writ Jurisdiction)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785403128_2379compressed.pdf

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