TMI Blog2021 (2) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision for granting personal hearing in a case where the declarant disputes the estimated amount, it would be in complete defiance of logic and contrary to the very object of the scheme to reject a declaration on the ground of being ineligible without giving a chance to the declarant to explain as to why its declaration should be accepted and relief under the scheme be extended to him. The matter remanded back to respondent Nos.3, 4 and 5 to consider the declaration of the petitioner dated 30.12.2019 in terms of the scheme as a valid declaration under the category of investigation, enquiry and audit and thereafter grant the consequential relief(s) to the petitioner - appeal allowed by way of remand. - WRIT PETITION (L) NO.809 OF 2020 - - - Dated:- 8-2-2021 - UJJAL BHUYAN MILIND N. JADHAV, JJ. Ms. Dipali Kamble, Advocate for the Petitioner. Mr. Sham Walve a/w Ms. Sangeeta Yadav, Advocates for the Respondents. P.C. Heard Ms. Dipali Kamble, learned counsel for the petitioner and Mr. Sham Walve along with Ms. Sangeeta Yadav, learned counsel for the respondents. 2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or before 30.06.2019. Reference has been made to section 125(1)(e) of the Finance (No.2) Act, 2019 to contend that a person who has been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit had not been quantified on or before 30.06.2019 would not be eligible to make the declaration under the said category. Therefore, the action of the designated committee in rejecting the declaration of the petitioner has been justified on the ground that investigation is pending and the amount of service tax payable had not been quantified on or before 30.06.2019. 10. While learned counsel for the petitioner has referred to Exh.C letter dated 24.06.2019 whereby petitioner had admitted total liability of service tax at ₹ 20,88,947.00 and thus being eligible to file the declaration under the category of enquiry, investigation or audit, Mr. Sham Walve, learned counsel for the respondents however submits that there was no quantification of dues on or before 30.06.2019 rendering the petitioner ineligible to file declaration under section 125(1)(e) of the Finance (No.2) Act, 2019. 11. Submissions made by learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner 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. 14. 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 period from 2015-2016 to June, 2017. This was corroborated by the departmental authority in the letter dated 24.01.2018 which we have already noted and discussed. Therefore, present is a case where there is acknowledgment by the petitioner of the duty liability as well as by the department in its communication to the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 the above it is evident that the word quantified under the scheme would mean a written communication of the amount of duty payable which will include a letter intimating duty demand or duty liability admitted by the person concerned during enquiry, investigation or audit or audit report and not necessarily the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aration) on the ground of being ineligible without giving a chance to the declarant to explain as to why his application (declaration) should be accepted and relief under the scheme should be extended to him. Summary rejection of an application without affording any opportunity of hearing to the declarant would be in violation of the principles of natural justice. Rejection of application (declaration) will lead to adverse civil consequences for the declarant as he would have to face the consequences of enquiry or investigation or audit. As has been held by us in Capgemini Technology Services India Limited (supra) it is axiomatic that when a person is visited by adverse civil consequences, principles of natural justice like notice and hearing would have to be complied with. Non-compliance to the principles of natural justice would impeach the decision making process rendering the decision invalid in law. 19. Thus, on a thorough consideration of the matter, we set aside the order dated 15.02.2020 and remand the matter back to respondent Nos.3, 4 and 5 to consider the declaration of the petitioner dated 30.12.2019 in terms of the scheme as a valid declaration under the cate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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