Case Note & Summary
The petitioner, Jai Sai Ram Mech & Tech India P. Ltd., a private limited company engaged in construction services, was registered under the Finance Act, 1994 for service tax. It filed periodical ST-3 returns and paid service tax where applicable. The petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) for settlement of service tax dues. The Joint Committee, by order dated 30th September 2023, rejected the declaration on the ground that an appeal was pending against the service tax demand. The petitioner challenged this rejection by way of a writ petition under Article 226 of the Constitution of India. The court held that the SVLDRS does not require withdrawal of appeal before filing a declaration; the committee ought to have considered the declaration on merits. The rejection was patently illegal and without jurisdiction. The court set aside the rejection order and directed the committee to consider the declaration afresh, after giving an opportunity of hearing to the petitioner. The writ petition was allowed.
Headnote
A) Service Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Declaration - Pending Appeal - The petitioner filed a declaration under the SVLDRS for settlement of service tax dues. The Joint Committee rejected the declaration on the ground that an appeal was pending against the demand. The court held that the scheme does not require withdrawal of appeal before filing declaration; the committee ought to have considered the declaration on merits. (Paras 1-10) B) Constitutional Law - Article 226 - Writ Jurisdiction - Alternative Remedy - The court entertained the writ petition despite availability of alternative remedy under the scheme, as the rejection was patently illegal and without jurisdiction. (Paras 1-10) C) Natural Justice - Opportunity of Hearing - The rejection order was passed without giving any opportunity of hearing to the petitioner, violating principles of natural justice. (Paras 1-10)
Issue of Consideration
Whether the rejection of the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on the ground that an appeal was pending against the service tax demand was valid, and whether the petitioner was entitled to relief under the scheme.
Final Decision
The court allowed the writ petition, set aside the rejection order dated 30th September 2023, and directed the Joint Committee to consider the petitioner's declaration afresh, after giving an opportunity of hearing to the petitioner.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 125
- Section 127
- Section 128
- Section 129
- Section 130
- Section 131
- Section 132
- Section 133
- Section 134
- Section 135
- Section 136
- Section 137
- Section 138
- Finance Act
- 1994
- Service Tax
- Article 226 of the Constitution of India
- Writ Petition
- Declaration
- Pending Appeal
- Withdrawal of Appeal
- Rejection of Declaration
- Opportunity of Hearing
- Natural Justice
