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2024 (4) TMI 302 - HC - Service TaxBenefit of SVLDRS - Discrepancies in the petitioner s declaration under the scheme alleging incorrect categorization and pending litigation. - It is the case of the Petitioner that it had discharged the service tax liability much before the cut off date and that there was no investigation / audit / enquiry pending against the Petitioner before the Respondents - Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - HELD THAT - In the present case it is obvious that there is a dispute between the Petitioner and the Respondents in respect of service tax amount payable by the Petitioner. According to the Petitioner it has paid the said amount of Rs. 23, 17, 088/-. Whilst according to the Respondents the said amount had to be paid by the Petitioner as stated in Form SVLDRS-3 issued by the Respondents as well as in Show Cause Notice dated 30th December 2020 issued by Respondent No. 3. As per the provisions of 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 give 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 SVLDRS-3 thereby depriving the Petitioner of an opportunity of 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. Thus before issuing Form SVLDRS-2 Respondent No. 3 could not have issued the said Show Cause Notice dated 30th December 2020. Form SVLDRS-3 and Show Cause Notice dated 30th December 2020 are required to be quashed and set aside and the matter is required to be remanded to the Designated Committee for taking a fresh decision in the matter after giving an opportunity of personal hearing to the Petitioner - Form SVLDRS-3 and SCN is hereby quashed and set aside - Matter is remanded back to the Designated Committee and it is directed to issue Form SVLDRS-2 to the Petitioner and after giving an opportunity of personal hearing to the Petitioner to pass a reasoned order within a period of six weeks from the date of intimation of this Order. Petition disposed off by way of remand.
Issues Involved:
1. Discharge of service tax liability 2. Application under the Sabka Vishwas Scheme 3. Issuance of incorrect remarks and Form SVLDRS-3 4. Violation of principles of natural justice Summary: Discharge of Service Tax Liability: The Petitioner, engaged in providing works contract services, was unable to discharge service tax liability for the period 2014 to June 2017 due to financial constraints but subsequently paid the outstanding amount totaling Rs. 23,17,088/- as soon as funds were available. Application under the Sabka Vishwas Scheme: The Petitioner applied under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, by submitting Form SVLDRS-1 declaring Rs. 23,17,088/- under voluntary disclosure. Issuance of Incorrect Remarks and Form SVLDRS-3: The Respondents made system-generated errors in the remarks on Form SVLDRS-1, which were acknowledged as irrelevant to the Petitioner's case. Despite the Petitioner's clarification, the Respondents issued Form SVLDRS-3 directing payment of Rs. 23,17,088/-, which had already been paid. A Show Cause Notice was also issued for recovery of the same amount. Violation of Principles of Natural Justice: The court observed that as per Section 127 of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules, the Designated Committee should have issued Form SVLDRS-2 and provided the Petitioner an opportunity for a personal hearing before issuing Form SVLDRS-3. The direct issuance of Form SVLDRS-3 without following due process violated the principles of natural justice. Judgment: The court quashed and set aside the Show Cause Notice dated 30th December 2020 and Form SVLDRS-3. The matter was remanded to the Designated Committee to issue Form SVLDRS-2, provide a personal hearing to the Petitioner, and pass a reasoned order within six weeks. The rule was made absolute, and the writ petition was disposed of without any order as to costs.
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