Case Note & Summary
The petitioner, Sabareesh Pallikere, proprietor of M/s. Finbros Marketing, filed a writ petition under Article 226 of the Constitution of India challenging the order dated 31.01.2020 passed by the Jurisdictional Designated Committee, Thane Commissionerate, which rejected his declaration dated 24.12.2019 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner was engaged in facilitating distribution of personal loans and was registered under Chapter V of the Finance Act, 1994. An inquiry was initiated by the Senior Intelligence Officer of DGGI, Pune Zonal Unit, for alleged non-payment of service tax dues from 2013-14 to 2017-18. Summons were issued under Section 14 of the Central Excise Act, 1944, and the petitioner's statements were recorded on 06.07.2018, 06.06.2019, and 25.09.2019, wherein he admitted service tax liability and made partial payments. The petitioner filed a declaration under the Scheme on 24.12.2019, which was rejected by the designated committee without assigning any reasons or providing an opportunity of hearing. The High Court found that the rejection order was cryptic and did not disclose any basis, and that the committee failed to follow principles of natural justice. The court allowed the petition, quashed the impugned order, and directed the designated committee to reconsider the declaration afresh after giving the petitioner a reasonable opportunity of hearing. The court also directed that the reconsideration be completed within four weeks from the date of receipt of the order.
Headnote
A) Service Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Rejection of Declaration - The petitioner, a proprietor of a service provider firm, filed a declaration under the Scheme for resolution of service tax dues for the period 2013-14 to 2017-18. The designated committee rejected the declaration without providing reasons or an opportunity of hearing. The High Court held that the rejection was arbitrary and violative of principles of natural justice, and directed the committee to reconsider the declaration afresh after giving the petitioner a reasonable opportunity of hearing. (Paras 2, 10-14)
Issue of Consideration
Whether the rejection of the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by the designated committee was valid and whether the petitioner is entitled to reconsideration of the declaration.
Final Decision
The High Court allowed the writ petition, quashed the impugned order dated 31.01.2020, and directed the designated committee to reconsider the petitioner's declaration dated 24.12.2019 afresh after giving the petitioner a reasonable opportunity of hearing. The reconsideration was to be completed within four weeks from the date of receipt of the order.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 14 of Central Excise Act
- 1944
- Section 83 of Finance Act
- 1994
- Section 174 of Central Goods and Services Tax Act
- 2017
- Article 226 of Constitution of India
Case Details
2021 LawText (BOM) (02) 30
WRIT PETITION (STAMP) NO.5510 OF 2020
Ujjal Bhuyan, Milind N. Jadhav
Mr. Devendra Jain i/by M/s. DHJ Law, Advocate for the Petitioner; Mr. Pradeep S. Jetly, Senior Advocate a/w Mr. J. B. Mishra, Advocates for the Respondents
Sabareesh Pallikere, Proprietor of M/s. Finbros Marketing
Jurisdictional Designated Committee, Thane Commissionerate, Division IV, Range-II & Ors.
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging the rejection of a declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
Remedy Sought
Quashing of order dated 31.01.2020 rejecting the declaration and direction to reconsider the declaration and grant reliefs under the Scheme.
Filing Reason
The designated committee rejected the petitioner's declaration without assigning reasons or providing an opportunity of hearing.
Previous Decisions
The designated committee passed order dated 31.01.2020 rejecting the declaration.
Issues
Whether the rejection of the declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was valid.
Whether the designated committee was required to provide reasons and an opportunity of hearing before rejecting the declaration.
Submissions/Arguments
Petitioner argued that the rejection order was cryptic, without reasons, and passed without giving any opportunity of hearing, violating principles of natural justice.
Respondents argued that the committee had considered the declaration and found it not acceptable, but did not provide detailed submissions in the judgment.
Ratio Decidendi
The designated committee's rejection of a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 without assigning reasons and without providing an opportunity of hearing is arbitrary and violative of principles of natural justice. The committee must pass a reasoned order after hearing the declarant.
Judgment Excerpts
By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 31.01.2020 passed by the designated committee i.e. respondent No.1 rejecting the declaration of the petitioner dated 24.12.2019 filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
The impugned order is a cryptic order. No reasons have been assigned as to why the declaration of the petitioner has been rejected. The order does not disclose any application of mind.
In the absence of any reasons, the impugned order cannot be sustained. The same is quashed and set aside.
Procedural History
The petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on 24.12.2019. The designated committee rejected the declaration by order dated 31.01.2020. The petitioner then filed the present writ petition under Article 226 of the Constitution of India on an unspecified date. The petition was reserved on 27.01.2021 and pronounced on 11.02.2021.
Acts & Sections
- Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019:
- Central Excise Act, 1944: 14
- Finance Act, 1994: 83
- Central Goods and Services Tax Act, 2017: 174
- Constitution of India: 226
