2023 (2) TMI 1397 - HC - GST

Rejection of benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 (SVLDRS) - non-payment of service tax on rent over immovable property and such members are allowed to file a declaration under the Scheme Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - HELD THAT - In the present case the petitioner in engaged in rendering services and is duly registered with the respondent as service provider. The communication sent to the petitioner that they are in the process of rejecting his application for consideration under the SVLDRS is Annexure P-9 and final order is Annexure P-11. Order Annexure P-11 is set aside and matter is remanded back to the designated Committee to pass a fresh order.

Summary

In the case before the Punjab and Haryana High Court, the petitioner sought relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 (SVLDRS). The petitioner, a registered service provider, faced rejection of their application under this scheme, as communicated in Annexure P-9 and finalized in Annexure P-11. The rejection was based on the absence of a Show Cause Notice or Order-in-original, which was a requirement for eligibility under the category 'LITIGATION' and sub-category 'APPEAL PENDING' with the Forum 'Supreme Court'.The petitioner referenced the Bombay High Court's decision in Nilkamal Limited & Others v. The Union of India & Others, which clarified that members of the Retailor Association of India could file declarations under SVLDRS, as per circular No.1073/06/2019. This circular was deemed clarificatory, suggesting that similar cases should be considered for scheme benefits.The Punjab and Haryana High Court, acknowledging the Bombay High Court's judgment, allowed the writ petition. It set aside the final order (Annexure P-11) and remanded the matter to the designated Committee for a fresh order in line with the clarificatory circular and the Bombay High Court's judgment in Nilkamal Limited's case.