Court Orders Reconsideration of Form SVLDRS-1 Rejection Under SVLDRS Scheme

The Court set aside the rejection of Form SVLDRS-1 under the SVLDRS Scheme 2019, directing a proper hearing by the designated committee to ensure compliance with natural justice principles. The petitioner was granted the opportunity to present their case, emphasizing adherence to legal procedures and principles.

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Issues:
Challenge to levy of tax under SVLDRS Scheme 2019, rejection of Form SVLDRS-1 without opportunity of hearing, interpretation of SVLDRS Scheme provisions.

Analysis:
The writ petition challenged the levy of tax claimed under Form SVLDRS-1, related to the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019. The petitioner filed service tax return late for the period from October 2016 to March 2017, without paying interest or penalty, seeking waiver under the SVLDRS Scheme. The respondent rejected the Form SVLDRS-1 without considering the Scheme provisions or granting a hearing, leading to the petitioner's objection.

The petitioner contended that the order requiring payment of penalty and interest was issued without a hearing, even though the Form was filed under the SVLDRS Scheme on time. The Scheme aimed to resolve disputes and provide relief, outlining eligible persons and procedures for declarations, verifications, and statements under Sections 125, 126, and 127 of the SVLDRS Scheme.

Section 127 of the SVLDRS Scheme mandates giving the declarant an opportunity to be heard before issuing a statement on payable amounts. The rejection of the petitioner's declaration without a hearing violated this requirement, leading to potential additional liabilities for the petitioner. The Court emphasized the importance of adhering to natural justice principles and statutory mandates in such cases.

Consequently, the Court set aside the rejection of Form SVLDRS-1, remanding the case to the designated committee for a proper hearing following the rules of natural justice. The designated committee was directed to reconsider the case after providing the petitioner with a fair opportunity to present their case, ensuring compliance with legal procedures and principles.

In conclusion, the writ petition was allowed to the extent of granting the petitioner a hearing and directing the designated committee to reevaluate the case in accordance with the law and principles of natural justice.

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