Case Note & Summary
The petitioner, Joseph Daniel Massey, is the sole proprietor of a proprietorship firm engaged in providing consultancy services and was registered as a service provider under the Finance Act, 1994. The service tax authorities initiated an audit inquiry against the petitioner for the period 2013-14 to 2016-17. In response, the petitioner acknowledged that he had not filed service tax returns for the period from October 2016 to March 2017 (part of financial year 2016-17) and the first quarter of financial year 2017-18, and requested time for payment of statutory dues. The petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, which was rejected by respondent No.4 (the Designated Committee) vide order dated 21st February, 2020 on the ground that the petitioner had not filed service tax returns for the relevant period. Aggrieved, the petitioner filed a writ petition under Article 226 of the Constitution of India seeking quashing of the rejection order and a direction to the respondents to accept the declaration and issue a discharge certificate. The court examined the provisions of the Sabka Vishwas Scheme, 2019 and noted that the Scheme does not mandate the filing of returns as a condition for making a declaration. The court held that the rejection was not sustainable in law and accordingly allowed the petition, quashing the order dated 21st February, 2020 and directing the respondents to accept the petitioner's declaration and issue the discharge certificate within a specified period.
Headnote
A) Service Tax - Sabka Vishwas Scheme - Declaration - Non-filing of Returns - The petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was rejected by the Designated Committee on the ground that the petitioner had not filed service tax returns for the period October 2016 to March 2017 and first quarter of 2017-18. The court examined the provisions of the Scheme and held that the Scheme does not require filing of returns as a condition for making a declaration. The rejection was set aside and the respondents were directed to accept the declaration and issue discharge certificate. (Paras 2-10) B) Constitutional Law - Writ Jurisdiction - Article 226 - The High Court exercised its writ jurisdiction under Article 226 of the Constitution of India to quash the order of rejection dated 21st February, 2020 passed by respondent No.4 and directed the respondents to accept the petitioner's declaration under the Sabka Vishwas Scheme, 2019 and issue discharge certificate. (Paras 1-2, 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 the petitioner had not filed service tax returns for the relevant period is valid in law.
Final Decision
The court allowed the writ petition, quashed the order dated 21st February, 2020 passed by respondent No.4, and directed the respondents to accept the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and issue the discharge certificate within a specified period.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 125 of Finance Act
- Article 226 of Constitution of India
- Service Tax
- Finance Act 1994
- Non-filing of returns
- Declaration
- Discharge certificate
