Case Note & Summary
The petitioner, a partnership firm registered under the Partnership Act, 1932 and engaged in advertising and design services, was registered as a service provider under the Finance Act, 1994. Service tax authorities initiated investigation against the petitioner for two periods: 1st April 2016 to 31st March 2017 and 1st April 2017 to 30th June 2017. The petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) seeking resolution of the legacy dispute. However, the respondents rejected the declaration vide e-mail dated 27th January 2020 without granting any opportunity of hearing to the petitioner. 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 grant an opportunity of hearing and thereafter accept the declaration. The court heard Mr. Bharat Raichandani for the petitioner and Mr. Pradeep S. Jetly, senior advocate with Mr. Jitendra B. Mishra for the respondents. The court observed that the rejection of the declaration without affording an opportunity of hearing was in violation of the principles of natural justice. The court held that even if the scheme does not expressly provide for a hearing, the authority must follow the principles of natural justice before passing an adverse order. Accordingly, the court allowed the writ petition, quashed the impugned e-mail dated 27th January 2020, and directed the respondents to grant a personal hearing to the petitioner and thereafter pass a fresh order in accordance with law.
Headnote
A) Constitutional Law - Principles of Natural Justice - Right to Hearing - Rejection of declaration under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 without affording opportunity of hearing is violative of principles of natural justice - The court held that even in the absence of a statutory provision, the authority must follow the principles of natural justice before passing an adverse order (Paras 1-10).
Issue of Consideration
Whether the rejection of a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 without granting an opportunity of hearing to the declarant is violative of principles of natural justice.
Final Decision
Writ petition allowed. Impugned e-mail dated 27th January 2020 quashed. Respondents directed to grant personal hearing to the petitioner and pass fresh order in accordance with law.
Law Points
- Principles of natural justice
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Article 226 of the Constitution of India
- Finance Act
- 1994
- Partnership Act
- 1932
