2020 (12) TMI 1126 - HC - Service Tax

Quantification of service tax demand - Sabkha Vishwas (Legacy Dispute Resolution) Scheme, 2019 opted - quantification prior to 30.06.2019 - it is the stand of the Department that such quantification was also served on the Petitioner - HELD THAT - It is clear that the Petitioner falls within the category of persons who is entitled to approach the authorities under the Scheme. Consequently, the order of rejection would have to be set-aside and the Respondents shall consider and pass orders on the application of the Petitioner, in accordance with the terms of the Scheme, within a period of six weeks from the date of receipt of this order. Petition disposed off.

Summary

Issues:
1) Disposal of identical Writ Petitions by Common Order.
2) Rejection of Petitioner's application under Sabkha Vishwas Scheme.
3) Lack of reasons for rejection in the impugned order.
4) Respondents' contention of the letter being bogus and lack of quantification details.
5) Violation of principles of natural justice.
6) Eligibility criteria for applying under the Scheme.
7) Resolution of quantification issue based on rejection order.
8) Quantification of service tax liability before 30.06.2019.
9) Petitioner's entitlement to approach authorities under the Scheme.

Analysis:
The High Court of Andhra Pradesh disposed of two identical Writ Petitions through a Common Order as the issues raised were the same. The Petitioner, running a bus service, received a notice to pay service tax, disputed the amount, and applied under the Sabkha Vishwas Scheme. However, the application was rejected without detailed reasons provided, leading to the Petitioner approaching the court.

The Respondents contended that the letter forming the basis of the application was bogus and lacked quantification details, justifying the rejection. The Petitioner argued a violation of natural justice due to the absence of reasons in the rejection order and claimed the letter was genuine, prompting the Scheme application.

The eligibility criteria for the Scheme were debated, with the Respondents asserting the Petitioner's ineligibility due to not being a registered dealer or providing turnover details. The Court emphasized the need for liabilities to be quantified or declared before 30.06.2019 for eligibility, which was crucial in this case.

Upon examining the rejection order, it was found that the service tax liability had indeed been quantified before the deadline, indicating the Petitioner's entitlement to participate in the Scheme. Consequently, the rejection order was set aside, and the Respondents were directed to reconsider the application within six weeks in line with the Scheme's terms.

Ultimately, both Writ Petitions were disposed of without costs, and any related pending petitions were to be closed accordingly. The judgment clarified the quantification issue and the Petitioner's eligibility, ensuring a fair consideration under the Sabkha Vishwas Scheme.