2023 (3) TMI 583 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - payments not made on or before the deadline fixed under the said Scheme - HELD THAT - Being a show cause notice issued under Section 174 of the Central Goods and Services Tax Act, 2017 on account of the non payment of the interest and penalty amount by the petitioner, the question of interfering with the impugned show cause notice will not arise, as the same has been issued only under authority prescribed under law. However, necessarily, the respondents will have to consider the reply dated 11.05.2022 submitted by the petitioner on merits and in accordance with law and only thereafter pass final orders after adhering to the principles of natural justice including granting the petitioner the right of personal hearing. This Writ Petition is disposed of by directing the petitioner to submit an additional reply to the impugned show cause notice dated 28.04.2022, within a period of two weeks from the date of receipt of a copy of this order.

Summary

Issues:
Challenge to show cause notice under Sabka Vishwas Scheme, 2019 - Non-payment of taxes within deadline - Claim of inability due to partner's health condition - Submission of reply to show cause notice - Request for additional time to file reply.

Analysis:
The petitioner filed a Writ Petition challenging the show cause notice issued on 28.04.2022 under the Sabka Vishwas Scheme, 2019 for non-payment of taxes within the prescribed deadline. The petitioner admitted to not making payments despite extensions granted by the respondents, citing the critical health condition of one of its partners as the reason for the delay. The petitioner submitted a reply to the notice on 11.05.2022, raising contentions including the claim of having paid the entire tax liability. The show cause notice was issued under Section 174 of the Central Goods and Services Tax Act, 2017, for non-payment of interest and penalty. The court noted that interference with the notice was not warranted as it was issued under legal authority, but directed the respondents to consider the petitioner's reply on merits and in accordance with the principles of natural justice before passing final orders.

The petitioner requested additional time to file another reply to the show cause notice, asserting that it would not prejudice the respondents. The court disposed of the Writ Petition by directing the petitioner to submit an additional reply within two weeks from the date of the order. The respondents were instructed to consider both the earlier and additional replies, grant a fair hearing to the petitioner, including a right to personal hearing, and pass final orders within two months. It was ordered that no coercive steps should be taken against the petitioner until final orders were issued. The judgment concluded without imposing any costs, and the connected Writ Miscellaneous Petition was closed.