2020 (7) TMI 450 - HC - Central Excise

Principles of Natural Justice - Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 - request for an opportunity of personal hearing rejected - rectification of mistake - whether aggrieved person of an order like Ext.P1 having availed the remedy of rectification, be permitted to take the benefit of Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 or not? - HELD THAT - It is deciphered that the amount estimated by the designated committee must exceed the amount declared by the declarant. However on comparison of Exts.P1 and P3 the amount confirmed in the order in original Ext.P1, is ₹ 5,88,76,999/- whereas in the scheme the petitioner had claimed the liability of ₹ 4,60,68,715/-. Thus it was less than the amount as estimated by the designated committee. It is also a matter of record that though the petitioner could have availed the scheme, the rectification petition, against Ext.P1, pending consideration could not have arrived at a figure other than reflected in Ext.P1 - Revenue clearly complied with the provisions of Section 127, as there was no such occasion to afford opportunity of hearing being a farcical exercise. The 1st respondent is directed to dispose of the rectification application Ext.P2, as expeditiously as possible, in accordance with law, by affording an opportunity of hearing - application disposed off.

Summary

Issues:
1. Whether the petitioner can benefit from the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 after filing a rectification petition?
2. Was the rejection of the petitioner's request for a personal hearing justified?
3. Should the rectification petition be disposed of expeditiously?

Analysis:

Issue 1:
The petitioner sought relief under the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 after filing a rectification petition against an order imposing service tax and penalties. The Ministry of Finance introduced the scheme, and the petitioner opted for it, claiming a reduced tax liability. However, the designated committee calculated a higher amount than what the petitioner declared. The court examined the provisions of Section 127 of the Finance Act, 2019, which require the estimated amount to exceed the declared amount for the scheme to apply. As the petitioner's declared amount was less than the committee's estimate, the court found no basis for the petitioner to avail the scheme. The court concluded that the revenue followed the law, and the petitioner was not entitled to relief under the scheme.

Issue 2:
The petitioner's request for a personal hearing was rejected, leading to a challenge in the writ petition. The court considered the provisions of Section 127 of the Finance Act, 2019, which mandate an opportunity for a hearing if the estimated amount exceeds the declared amount. Since the petitioner's declared amount was less than the estimate, the court deemed the rejection of the personal hearing as justified. The court found no need for a hearing as the discrepancy did not warrant it, and the rejection was in line with the law.

Issue 3:
The court addressed the need for expeditious disposal of the rectification petition filed by the petitioner. While dismissing relief No. 1 regarding the Sabka Vishwas Legacy Dispute Resolution Scheme, the court directed the respondent to dispose of the rectification application promptly and in accordance with the law. The court emphasized the importance of a timely resolution of the rectification petition, ensuring that the petitioner's concerns are addressed efficiently.

In conclusion, the court dismissed relief No. 1 regarding the scheme but directed the respondent to expedite the disposal of the rectification petition, providing a balanced outcome to the petitioner's claims.