2020 (7) TMI 89 - HC - Service Tax

Waiver of Interest - Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - scheme rejected without affording any opportunity of hearing by stating the date of communication declared is 05.09.2019 which is beyond the cut-off date (i.e. 30.06.2019) - HELD THAT - This Court finds that the impugned communication dated 05th March, 2020 has been issued by the respondents without giving an opportunity of hearing to the petitioner and without considering the case put forward by the petitioner. The present writ petition and pending application are disposed of by setting aside the order/communication dated 05th March, 2020 and by directing the respondent No.2 to give a hearing to the petitioner on 09th July, 2020 at 11.30 a.m.

Summary

Issues:
Challenge to rejection of declaration under Sabka Vishwas Scheme 2019 based on cut-off date for quantification.

Analysis:
The petitioner challenged the rejection of their declaration under the Sabka Vishwas Scheme 2019, specifically for waiver of interest only from April 2015 to June 2017. The rejection was based on the communication dated 05th March 2020, which cited the cut-off date of 30th June 2019 as the reason for rejection. The petitioner argued that they were made aware of the quantification prior to the cut-off date in March 2019. The petitioner contended that the rejection was contrary to the provisions of Section 125(1)(e) of Chapter V of the Finance Act, 2019, which mentions quantification by the cut-off date, not communication.

The petitioner highlighted that an Assistant Commissioner had informed them in a letter dated 05th September 2019 to avail of the Scheme if desired, indicating their eligibility. On the other hand, the respondents argued that the quantification was done post 30th June 2019 and communicated to the petitioner for the first time on 05th September 2019. The respondents rejected the petitioner's reliance on internal correspondences to prove quantification in March 2019.

The Court found that the communication rejecting the petitioner's declaration was issued without giving an opportunity of hearing to the petitioner and without considering their case. Consequently, the Court set aside the order/communication dated 05th March 2020 and directed the respondent to provide a hearing to the petitioner on 09th July 2020. The Court allowed the petitioner to file appropriate proceedings if aggrieved by the decision of the respondent, leaving all rights and contentions of the parties open. The Court ordered the upload of the order on the website and forwarded a copy to the learned counsel through email.