TMI Blog2021 (1) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents in the affidavits. Having regard to the principles of natural justice petitioner ought to have been given an opportunity of hearing before rejection of the declaration. Matter remanded back to respondent Nos. 3,4 and 5 to consider the declaration of the petitioner in terms of the scheme as a valid declaration under the category of investigation, inquiry and audit and thereafter grant the consequential relief - petition allowed by way of remand. - Writ Petition (ST.) No. 3151 of 2020 - - - Dated:- 7-1-2021 - Ujjal Bhuyan And Abhay Ahuja, JJ. For the Appellant : Bharat Raichandani, Advocate. For the Respondents : Sham Walve and Ram Ochani, Advocates. DECISION Ujjal Bhuyan, J. 1. Heard Mr. Bharat Raichandani, learned counsel for the petitioner; and Mr. Sham Waive, learned counsel for the respondents. 2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 21st February, 2020 passed by respondent No. 4 rejecting the declaration of the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and further seeks a direction to the respondents to ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits to the declarants subject to eligibility. 9. In terms of the said scheme, petitioner filed declaration on 26th December, 2019 under sub-category of audit within the category of investigation, inquiry or audit . Petitioner declared an amount of ₹ 40,91,524.00 as the amount of service tax dues. 10. According to the petitioner there was some communication between petitioner and the office of respondent No. 4 regarding the declaration filed by the petitioner under the scheme though nothing fruitful came out of it. However, vide e-mail dated 21st February, 2020 respondent No. 4 rejected the declaration of the petitioner. 11. Aggrieved, present writ petition has been filed seeking the reliefs as indicated above. 12. Stand taken by respondent No. 4 in the affidavits filed is that there was no determination of service tax dues payable by the petitioner on or before 30th June, 2019 which is the cut off date under the scheme. Preliminary observation was made on 19th July, 2019, whereafter final audit observation was made on 2nd August, 2019 determining the service tax dues of the petitioner for the period under consideration at ₹ 40,91,524.00. Thus, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntifying the service tax liability for the period 1st April, 2016 to 31st March, 2017 at ₹ 47,44,937.00 which quantification is before the cut off date of 30th June, 2019 and on the other hand for the second period i.e. from 1st April, 2017 to 30th June, 2017 there is a letter dated 18th June, 2019 of the petitioner addressed to respondent No. 3 admitting service tax liability for an amount of ₹ 10,74,011.00 which again is before the cut off date of 30th June, 2019. Thus, petitioner's tax dues were quantified on or before 30th June, 2019. 50. In that view of the matter, we have no hesitation to hold that petitioner was eligible to file the application (declaration) as per the scheme under the category of enquiry or investigation or audit whose tax dues stood quantified on or before 30th June, 2019. 16. Subsequently, in M/s. G.R. Palle Electricals Vs. Union of India, 2020-TIOL-2031-HC-MUM-ST, this court held as follows:- 27. We have already noticed that proprietor of the petitioner in his statement recorded on 11.01.2018 by the investigating authority admitted the service tax liability of ₹ 60 lakhs (approximately) to be outstanding for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand had been quantified on or before 30.06.2019 would be eligible under the scheme. The word quantified has been defined under the scheme as a written communication of the amount of duty payable under the indirect tax enactment. In such circumstances, Board clarified that such written communication would include a letter intimating duty demand or duty liability admitted by the person during enquiry, investigation or audit etc. 23. Reverting back to the facts of the present case we find that there is clear admission / acknowledgment by the petitioner about the service tax liability. The acknowledgment is dated 27.06.2019 i.e., before 30.06.2019 both in the form of letter by the petitioner as well as statement of its Director, Shri. Sanjay R. Shirke. In fact, on a pointed query by the Senior Intelligence Officer as to whether petitioner accepted and admitted the revised service tax liability of ₹ 2,47,32,456.00, the Director in his statement had clearly admitted and accepted the said amount as the service tax liability for the period from 2015-16 upto June, 2017 with further clarification that an amount of ₹ 1,20,60,000.00 was already paid. 26. Following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... litigations in respect of service tax and central excise from pre-GST regime so that the business can move on. This was also the view expressed by the Board in the circular dated 27th August, 2019 wherein all the officers and staff working under the Board were called upon to partner with trade and industry to make the scheme a grand success which in turn will enable the administrative machinery to fully focus in the smooth implementation of GST. This is the broad picture which the officials must have in mind while considering an application (declaration) seeking amnesty under the scheme. The approach should be to ensure that the scheme is successful and therefore, a liberal view embedded with the principles of natural justice is called for. 20. That apart, the impugned rejection of the declaration of the petitioner is devoid of any reason. The rejection has only be explained by the respondents in the affidavits. Having regard to the principles of natural justice petitioner ought to have been given an opportunity of hearing before rejection of the declaration. 21. Therefore, considering the above and taking an overall view of the matter, we set aside the order dated 21st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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