Case Note & Summary
The petitioner, UCC Infrastructure Pvt. Ltd., filed a writ petition under Article 226 of the Constitution of India challenging the orders dated 9th December, 2020 and 20th February, 2020 passed by the respondent authorities under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (the Scheme). The Scheme was introduced by the Central Government to settle legacy disputes under erstwhile service tax and central excise laws subsumed under GST. The petitioner filed an electronic declaration in Form SVLRDS-1 on 9th September, 2019 under the voluntary category, declaring tax dues of Rs.36,24,108/- for the period 1st September, 2015 to 30th June, 2017. However, on 30th September, 2020, the Joint Commissioner (Respondent No.3) passed an order rejecting the declaration without providing any opportunity of hearing and without assigning any reasons. The petitioner contended that the rejection was arbitrary, without application of mind, and in violation of principles of natural justice. The respondents argued that the rejection was justified as the petitioner had not complied with certain requirements. The court examined the Scheme's objective and found that the impugned orders did not disclose any reasons and were passed mechanically. The court held that the authorities must apply their mind and provide a hearing before rejecting a declaration. Consequently, the court quashed the impugned orders and directed the respondents to reconsider the petitioner's declaration afresh in accordance with law, after giving the petitioner an opportunity of hearing. The petition was allowed with no order as to costs.
Headnote
A) Administrative Law - Natural Justice - Rejection of Declaration - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - The respondent rejected the petitioner's declaration under the Scheme without providing any opportunity of hearing and without considering the objective of the Scheme to settle legacy disputes. The court held that such rejection was arbitrary and violative of principles of natural justice. (Paras 5-7) B) Tax Law - Sabka Vishwas Scheme - Non-Application of Mind - Section 124 of Finance (No. 2) Act, 2019 - The impugned order rejecting the declaration did not disclose any reasons and was passed mechanically. The court held that the authority must apply its mind to the facts and circumstances of the case before rejecting a declaration under the Scheme. (Paras 5-7) C) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - The court exercised its writ jurisdiction to quash the impugned orders as they were passed without jurisdiction and in violation of natural justice. The court directed the respondents to reconsider the petitioner's declaration afresh. (Paras 7-8)
Issue of Consideration
Whether the rejection of the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by the respondent authorities was arbitrary, without application of mind, and in violation of principles of natural justice.
Final Decision
The court allowed the writ petition, quashed the impugned orders dated 9th December, 2020 and 20th February, 2020, and directed the respondents to reconsider the petitioner's declaration afresh in accordance with law, after giving the petitioner an opportunity of hearing. No order as to costs.
Law Points
- Natural justice
- Non-application of mind
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 124 of Finance (No. 2) Act
- Article 226 of Constitution of India
