{"id":3057,"date":"2025-03-14T12:08:34","date_gmt":"2025-03-14T06:38:34","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3057"},"modified":"2025-03-14T12:08:34","modified_gmt":"2025-03-14T06:38:34","slug":"authority-directed-to-allow-svldr-scheme-benefit-as-audit-was-initiated-before-cut-off-date-but-action-taken-later-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/authority-directed-to-allow-svldr-scheme-benefit-as-audit-was-initiated-before-cut-off-date-but-action-taken-later-hc","title":{"rendered":"Authority Directed to Allow SVLDR Scheme Benefit as Audit Was Initiated Before Cut-Off Date but Action Taken Later | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000389892\/authority-is-directed-to-allow-svldr-scheme-benefit-as-audit-was-initiated-before-cut-off-date-but-action-taken-later-hc\">Audit-I Commissionerate, O\/O Commissioner Of Central Tax, Bengaluru Versus Thinkhigh Solutions Pvt. Ltd.<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>V. Kameswar Rao<\/strong> &amp; <strong>S. Rachaiah<\/strong>, JJ.<\/li>\n<li><strong>Shri Shishira Amaranath<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Lakshmi Menon<\/strong>, Adv., for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, engaged in taxable services, applied for settlement under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS), filing Form No. 1. The Department issued Form No. 2, and the assessee submitted Form No. 2A, agreeing to the quantified tax dues. Meanwhile, an audit was initiated covering October 2012 to June 2017, with the matter later transferred to the DGGI. The assessee again sought SVLDRS benefits, but the Department rejected the declaration under the \u2018Investigation, Enquiry or Audit\u2019 category, issuing Form No. 3. Aggrieved, the assessee challenged the rejection before the Karnataka High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Karnataka High Court held that once Form No. 2 was issued and not withdrawn, the Department was obligated to proceed with Form No. 3, allowing the assessee to pay the dues. The rejection, based on a post-cut-off audit action, was contrary to CBIC Circular No. 1074\/07\/2019-CX, which fixed 30.06.2019 as the relevant date for eligibility. Since the audit was initiated before this date, the rejection was unjustified. The Court directed the Department to extend the SVLDRS benefit, ruling in favour of the assessee.<\/p>\n<h2><em>List of Cases Reviewed<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2022%20(66)%20G.S.T.L.%20428%20(Kar.)&amp;itemType=AP\">Thinkhigh Solutions Pvt. Ltd. v. Commissioner<\/a> \u2014 2022 (66) G.S.T.L. 428 (Kar.) \u2014 Affirmed [Para 1]<\/li>\n<\/ul>\n<h2><em>List of Departmental Clarification Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=B.B.I%20%26%20C.%20Circular%20No.%201074%2F07%2F2019-CX&amp;itemType=AP\">B.B.I &amp; C. Circular No. 1074\/07\/2019-CX<\/a>, dated 12-12-2019 [Paras 13, 14]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Audit-I Commissionerate, O\/O Commissioner Of Central Tax, Bengaluru Versus Thinkhigh&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3059,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Authority Directed to Allow SVLDR Scheme Benefit as Audit Was Initiated Before Cut-Off Date but Action Taken Later | HC<\/title>\n<meta name=\"description\" content=\"The Karnataka High Court ruled that 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