2020 (3) TMI 658 - HC - Central Excise

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - rejection on the ground that the concerned investigative authority has submitted that the amount has neither been quantified nor communicated to the assessee - Circular No.1071/4/2019-CX.8 dated 27th August, 2019 - HELD THAT - Since in the present case, the petitioner has raised a plea that it was eligible to file an application despite the amount having been neither quantified nor communicated to the assessee by the Department till 30th June, 2019, this Court is of the view that an opportunity of hearing should have been given to the petitioner before passing any adverse order. The impugned communications dated 26th November, 2019 and 19th December, 2019 are set aside and the respondent no.1 is directed to decide the petitioner s application after giving an opportunity of hearing to the petitioner. List the matter before respondent no.1 on 16th March, 2020 at 11.30 P.M. A reasoned order, after giving an opportunity of hearing, shall be passed by respondent no.1 on or before 25th March, 2020 - application disposed off.

Summary

Issues:
Challenge to rejection of application under Sabka Vishwas Scheme without prior notice and opportunity of hearing.

Analysis:
The petitioner filed a writ petition challenging the rejection of their application under the Sabka Vishwas Scheme based on communications dated 26th November, 2019, and 19th December, 2019. The rejection was due to the investigative authority stating that the amount had not been quantified or communicated to the assessee. The petitioner argued that the impugned communications were issued without prior notice or an opportunity for a hearing. The petitioner contended that Section 127 of the Scheme mandates an opportunity of hearing by the Designated Committee. They also claimed eligibility under Circular No.1071/4/2019-CX.8 dated 27th August, 2019. The court noted that despite the amount not being quantified or communicated to the assessee by 30th June, 2019, the petitioner believed they were eligible to apply under the Scheme. The court held that an opportunity of hearing should have been provided before any adverse order was passed. Consequently, the communications dated 26th November, 2019, and 19th December, 2019 were set aside, and the respondent was directed to decide the petitioner's application after giving them an opportunity of hearing. The matter was scheduled for 16th March, 2020, and a reasoned order was to be passed by 25th March, 2020. The rights and contentions of both parties were left open. The writ petition and pending application were disposed of with these directions.