QUANT BROKING PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner is a member of various stock exchanges including National Stock Exchange and Bombay Stock Exchange and undertakes trading in shares, currencies and derivatives instruments as a stock broker for its clients. Petitioner discharges service tax on the brokerage / commission received from the clients towards rendition of services of stock broking services to its domestic and foreign clients. Petitioner also undertakes trading on its own account as well.

(2.) In 2019, Government of India introduced a scheme called "Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 (the scheme) under Chapter V of the Finance Act, 2019 (Finance Act). The scheme was applicable to various enactments as mentioned under sec. 122 of the Finance Act and that included the Finance Act 2004, Finance Act 2007, Finance Act 2015 and Finance Act 2016. Under the scheme, all persons were eligible to make a declaration to settle under the Scheme except those specifically excluded under sec. 125 of the Finance Act. As per the scheme, the eligible person would make a declaration under the scheme, which shall be considered by the designated committee under sec. 126 of the Finance Act and the designated committee would issue a statement under sec. 127 of the Finance Act. How much will be the tax due and payable under the scheme is provided for under sec. 123 of the Finance Act.

(3.) Petitioner had filed such declaration under the scheme. The declaration has been accepted but according to petitioner, respondents have not given credit to certain amounts which, according to petitioner, has been paid. If such credit has been given, there will be no further amount payable by petitioner and in fact there will be surplus amount with the Government, which Government need not refund by virtue of sec. 124 of the Finance Act. The amount which according to petitioner that had to be adjusted was about Rs.5,37,25,305.00.