2020 (6) TMI 641 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - Waiver of interest and penalty for the period October 2013 to September 2016 - Rejection of waiver without affording any opportunity of hearing - HELD THAT - Issue notice. Mr. Harpreet Singh, learned counsel accepts notice on behalf of the respondents. He states that he has no objection if the present writ petition is directed to be treated as representation to the respondent No.2 - Consequently, the present writ petition is directed to be treated as a representation by the respondent No.2, who is directed, to dispose of the same on or before 30th June, 2020 after giving an opportunity of hearing to an authorised representative of the petitioner on 29th June, 2020 at 11.30 A.M. Petition disposed off.

Summary

Issues:
Challenge to rejection of declarations under Sabka Vishwas Scheme 2019 without hearing.

Analysis:
The petition challenged the rejection of declarations filed under the Sabka Vishwas Scheme 2019 without any opportunity for a hearing. The declarations sought waiver of interest and penalty for the period from October 2013 to September 2016. The rejection was based on a discrepancy in the declared liability compared to the liability shown in the return. The petitioner argued that they had correctly declared tax dues as nil in line with a circular issued by the Central Board of Indirect Taxes and Customs, as taxes were fully paid. The petitioner highlighted that similar declarations for a later period had been processed after an oral hearing, directing payment as per Form SVLDRS-3. The petitioner contended that as a single assessee company with one Service Tax Registration Number, all declarations should have been processed together under the Scheme, rather than in a disjointed manner as done by the respondents.

The Court issued notice on the matter, and the respondent's counsel accepted notice, indicating no objection to treating the writ petition as a representation to the concerned authority. Consequently, the writ petition was directed to be treated as a representation to the respondent, who was directed to dispose of the matter by a specified date after providing an opportunity for a hearing to the petitioner's authorized representative. The Court disposed of the writ petition and application with the given direction, leaving all rights and contentions of the parties open. The order was to be uploaded on the website immediately, with a copy forwarded to the petitioner's counsel via email.