Case Note & Summary
The petitioner, M/s. Jagadish Advertising, an advertising agency, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the statements issued by the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The background of the case is that on 07.09.2018, the Directorate General of GST Intelligence issued a Show Cause Notice (SCN) to the petitioner demanding a sum of Rs.13,06,07,173/- as service tax. Subsequently, the petitioner filed a declaration under the Sabka Vishwas Scheme, disclosing the same amount. The Designated Committee issued Form SVLDRS-2 on 12.02.2020, stating that the amount estimated to be payable was Rs.13,06,07,173/-. However, on 29.02.2020, the Committee issued Form SVLDRS-3 demanding a higher amount of Rs.19,59,10,759/-, without providing any opportunity to the petitioner to explain or rectify the alleged error in the declaration. The petitioner contended that the Committee had no authority to unilaterally change the amount without giving a hearing. The respondents argued that the petitioner had made an error in the declaration and that the Committee was justified in correcting it. The Court analyzed the provisions of the Scheme and held that the Designated Committee cannot revise the amount payable without providing an opportunity to the declarant to be heard. The Court quashed the impugned statements in Form SVLDRS-2 and SVLDRS-3 and directed the Committee to reconsider the matter after giving a reasonable opportunity of hearing to the petitioner. The decision was in favor of the petitioner.
Headnote
A) Service Tax - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Section 125 of Finance Act, 2019 - Error in Declaration - The petitioner filed a declaration under the Scheme disclosing a tax amount of Rs.13,06,07,173/-. The Designated Committee issued Form SVLDRS-2 stating that the amount estimated to be payable was Rs.13,06,07,173/-, but later issued Form SVLDRS-3 demanding a higher amount of Rs.19,59,10,759/- without providing any opportunity to the petitioner to explain or rectify the alleged error. Held that the Committee cannot unilaterally change the amount without giving a hearing, and the statements are quashed. (Paras 1-10) B) Constitutional Law - Articles 226 and 227 of Constitution of India - Writ Jurisdiction - The High Court exercised its writ jurisdiction to quash the impugned statements as they were issued in violation of principles of natural justice. The Court held that the Designated Committee must provide an opportunity to the declarant before revising the amount payable under the Scheme. (Paras 1-10)
Issue of Consideration
Whether the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is justified in issuing statements in Form SVLDRS-2 and SVLDRS-3 without providing an opportunity to the declarant to rectify an alleged error in the declaration, and whether such statements are liable to be quashed.
Final Decision
The writ petition is allowed. The impugned statements in Form SVLDRS-2 dated 12.02.2020 and Form SVLDRS-3 dated 29.02.2020 are quashed. The Designated Committee is directed to reconsider the matter after providing a reasonable opportunity of hearing to the petitioner.
Law Points
- Sabka Vishwas (Legacy Dispute Resolution) Scheme
- 2019
- Section 125 of Finance Act
- SVLDRS-2
- SVLDRS-3
- Show Cause Notice
- Service Tax
- Error in Declaration
- Opportunity of Hearing
- Natural Justice
