2020 (3) TMI 659 - 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 declaration under Sabka Vishwas Scheme, 2019 without prior notice or hearing.

Analysis:
The judgment pertains to a writ petition challenging the rejection of a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The rejection was based on the investigative authority's information that the amount was not quantified or communicated to the assessee by June 30, 2019. The petitioner argued that the rejection lacked prior notice, hearing, and consideration of their letter dated November 25, 2019, which referenced a circular providing relief under the Scheme for cases where duty had been admitted by the assessee before the specified date. The petitioner had quantified and admitted the service tax liability in a previous communication. The court opined that the petitioner should have been granted a hearing before the adverse order was passed.

The court set aside the order dated December 10, 2019, directing the petitioner to appear before the concerned authority for a hearing on March 16, 2020. The authority was instructed to pass a reasoned order by March 25, 2020, after providing the petitioner with an opportunity to present their case. The judgment disposed of the writ petition and left the rights and contentions of the parties open for further proceedings.