Kedar,

Your driver's seat will swivel to face the rear without hitting the
steering wheel if you slide the seat to it's forward most position
as you start to rotate it-probably at about 90 degrees.
Once in position it can be slid at least some of the way back again 
(that is, untill the rear of the seat is against the steering wheel)
This is how mine works and they are VW made mechanisms.  

Steve O.
'92 Waterboxer
'76 Crew Cab