2025 (4) TMI 930 - HC - GST

Violation of principles of natural justice and fair play - settlement of dispute by applying in Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - HELD THAT - The impugned order is quashed and set aside. Petition allowed.

Summary

The Bombay High Court, through B.P. Colabawalla and Firdosh P. Pooniwalla, addressed a Writ Petition challenging Order-in-Original No. NSK/CGST-ST/COM/049/2023-24 dated 07.03.2024, which arose from a Show Cause Notice dated 20.04.2021 demanding Rs. 2,32,64,372/- as service tax liability. The Petitioner contended that the order violated "principles of natural justice and fair play," having already settled the dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by filing a declaration and paying Rs. 1,97,09,571/-, with a Discharge Certificate issued on 30.06.2020.The Respondent confirmed the issuance of the Discharge Certificate but noted the Petitioner's failure to attend personal hearings, leading to an ex-parte order. However, conceding the correctness of the Petitioner's settlement, the Respondent's advocate stated the Petition should be allowed.The Court accepted the Respondent's statement and held: the Writ Petition is allowed, and the impugned Order-in-Original is "quashed and set aside." There was no order as to costs. This decision underscores the binding effect of the Sabka Vishwas Scheme settlement and the necessity of fair adjudication respecting such settlements.