2020 (7) TMI 166 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - penalty figure not declared - Evasion of service tax - suppression of material facts with intent to evade payment of Service Tax - HELD THAT - The matter is remanded back to the authorities to reconsider the application/declaration furnished by the petitioner being ARN LD14012000001159 filed on 14.01.2020 and pass appropriate orders thereon in terms of the scheme and the rules framed there under. If the authorities require a fresh declaration then they shall permit the petitioner to file such declaration afresh. Petition allowed by way of remand.

Summary

Issues:
1. Show cause notice alleging evasion of service tax.
2. Adjudication under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
3. Rejection of declaration under the scheme.
4. Writ petition challenging rejection.

Analysis:
1. The case involved a show cause notice issued to the petitioner for alleged evasion of service tax, leading to confirmation of a substantial demand along with penalties by the Adjudicating Authority. The petitioner sought early adjudication to apply under the Sabka Vishwas Scheme, which allows for a waiver of certain amounts under specific conditions.

2. Under the Sabka Vishwas Scheme, the petitioner filed a declaration electronically, initially omitting the penalty figure but rectified it in a subsequent filing. The authorities requested additional documents, and the petitioner provided clarifications, eventually submitting two declarations for the same case. However, the initial declaration was rejected due to the absence of the penalty amount, causing confusion and subsequent rejection of the corrected declaration.

3. The petitioner, having met all objections raised by the department, expected the issuance of Form SVLDRS 3 but was surprised to find the rejection of the initial declaration on the grounds of a prior disposal of a similar issue. This prompted the filing of a writ petition challenging the rejection and seeking a reconsideration of the application under the Sabka Vishwas Scheme.

4. The court, considering similar cases and orders, set aside the rejection and remanded the matter back to the authorities for a fresh decision on the petitioner's application. Both parties agreed to this course of action, leading to the disposal of the writ petition with directions for the authorities to review the application within a specified timeframe.

This comprehensive analysis highlights the legal proceedings, the application of the Sabka Vishwas Scheme, the rejection of the declaration, and the subsequent writ petition challenging the rejection, culminating in a remand for reconsideration by the authorities.