SOLAMALAI AUTOMOBILES PRIVATE LIMITED Vs. DESIGNATED COMMITTEE, COMMISSIONER OF GST AND CENTRAL EXCISE AND ORS.

JUDGEMENT

(1.) The petitioner is a private limited company engaged in sales and services of Maruti Suzuki brand cars purchased from M/s.Maruti Udyog Ltd on principal to principal basis. Alleging that the petitioner is liable to pay service tax under various heads to the tune of Rs.5,10,91,364.00 together with penalty and interest, the Commissioner of Central Excise, Madurai issued show cause notice No.17/2015 dtd. 12/10/2015. The petitioner submitted their reply. Not satisfied with the same, the adjudicating authority by order dtd. 26/2/2018 confirmed the demand and also levied interest and penalty. The petitioner applied for rectification of the said order on the ground that it suffered from mistakes apparent on the face of record. The rectification petition dtd. 11/6/2018 was rejected as devoid of merits on 5/3/2019.

(2.) The petitioner did not file any appeal challenging the same. In the meanwhile, the Union Government introduced Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 vide Ss. 120 to 135 of the Finance (No.2) Act, 2019. Availing the said opportunity, the petitioner filed application in Form SVLDRS 1. The stand of the petitioner is that no further amount is due and payable by them. However, the petitioner's stand was rejected and the application was disposed of by holding that the petitioner has to pay a further sum of Rs.90,70,581.00. Questioning the same, this writ petition has been filed.

(3.) The respondents have filed their counter affidavits. Their stand is that as against the tax liability of Rs.5,10,91,364.00 the petitioner had already deposited a sum of Rs.3,59,73,729.00. The balance tax that remains unpaid is Rs.1,51,17,635.00. The petitioner is entitled to tax relief at the rate of 40% on tax dues. This comes to Rs.60,47,054.00. Therefore, the balance amount payable by the petitioner comes to Rs.90,70,581.00.