9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 74 - HC - Service TaxPrinciples of natural justice - Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - dispute regarding the amount payable under the Scheme - department alleged that there was a difference of services shown in the Income Tax Returns vis-a-vis the value shown in the service tax returns for the period under dispute - requirement to grant personal hearing to the declarant - HELD THAT - As per the provisions of the Section 127 of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules the Designated Committee was required to issue Form SVLDRS 2 indicating the amount which according to the Designated Committee was payable by the Petitioner and giving an opportunity of personal hearing to the Petitioner. If such a Form SVLDRS 2 had been issued by the Designated Committee then the Petitioner would have got an opportunity of personal hearing and of making written submissions by filing Form SVLDRS-2A. However in the present case without issuing Form SVLDRS 2 the Designated Committee has straight away issued Form SVLDRS 3 thereby depriving the Petitioner of an opportunity of a personal hearing. This action of the Designated Committee of straight away issuing Form SVLDRS 3 without issuing Form SVLDRS 2 is not only in violation of Section 127 of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules but is also in total violation of the principles of natural justice. Form SVLDRS 3 is required to be quashed and the matter is required to be remanded back to the Designated Committee for taking a fresh decision in the matter after giving an opportunity of hearing to the Petitioner - Form SVLDRS 3 dated 2nd December 2020 is hereby quashed and set aside. Petition allowed by way of remand.
Issues Involved:
1. Validity of the Show Cause Notice dated 12th April 2019. 2. Eligibility and procedural compliance under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. 3. Requirement of issuing Form SVLDRS 2 and granting a personal hearing. Summary: Validity of the Show Cause Notice dated 12th April 2019: The Petitioner, a Partnership Firm engaged in technical testing and certification services, was issued a Show Cause Notice on 12th April 2019 by the service tax department, alleging a discrepancy of Rs. 19,80,37,410/- between the Income Tax Returns and service tax returns. The notice proposed to demand and recover Rs. 2,44,77,423/- along with interest and penalty. The Petitioner contended that the turnover declared in Form ST-3 was not NIL as alleged and had already deposited Rs. 1,70,46,567/- which was not considered in the notice. Eligibility and Procedural Compliance under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019: The Petitioner filed Form SVLDRS 1 under the Sabka Vishwas Scheme, declaring Rs. 2,44,77,423/- as tax dues. According to Section 124(1)(a), the amount payable under the Scheme was 50% of the tax dues, i.e., Rs. 1,22,38,711.50. The Petitioner mistakenly declared Rs. 1,70,46,567/- under "Reason for disagreement" instead of the "Pre-deposit column". Consequently, Respondent Nos. 4 and 5 issued Form SVLDRS 3, disallowing the pre-deposit and demanding Rs. 1,22,38,711.50. The Petitioner argued that as the deposited amount exceeded the tax dues, the payable amount should be NIL. Requirement of Issuing Form SVLDRS 2 and Granting a Personal Hearing: The Petitioner contended that under Section 127(2) of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules, the Designated Committee was required to issue Form SVLDRS 2 and grant a personal hearing if there was a dispute regarding the amount payable. Despite disputing the amount in Form SVLDRS 1, no Form SVLDRS 2 was issued, nor was a personal hearing granted, violating the Scheme's provisions and principles of natural justice. Judgment: The Court held that the Designated Committee's action of issuing Form SVLDRS 3 without issuing Form SVLDRS 2 and without granting a personal hearing was in violation of Section 127 of the Sabka Vishwas Scheme, Rule 6 of the Sabka Vishwas Rules, and principles of natural justice. The Court quashed Form SVLDRS 3 and remanded the matter back to the Designated Committee to issue Form SVLDRS 2, grant a personal hearing, and pass a reasoned order within six weeks. The Writ Petition was disposed of with no order as to costs.
|
