Court orders rectification of technical error in Sabka Vishwas Scheme application, emphasizes fair consideration for assessee

The court allowed the respondent assessee to rectify a minor technical error in their application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019. The rejection based on incorrect details was deemed inappropriate, and the Designated Committee was directed to reconsider the application on its merits, emphasizing that technicalities should not hinder the scheme's objectives. The court instructed the committee to finalize the declaration within six months, ensuring fair consideration for the assessee.

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Issues Involved:
1. Eligibility of the respondent assessee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 (SVS Scheme).
2. Rejection of the application due to incorrect details provided.
3. Availability of rectification provisions under the SVS Scheme.
4. The role and jurisdiction of the Designated Committee post the last date for application submission.
5. Legal precedents and their applicability to the case.
6. Relief to be granted to the assessee.

Detailed Analysis:

1. Eligibility of the Respondent Assessee under the SVS Scheme:
The core issue revolves around the eligibility of the respondent assessee to be considered under the SVS Scheme. The application was rejected because the order-in-original number was incorrectly provided, with the order-in-appeal number being mentioned instead.

2. Rejection of the Application Due to Incorrect Details Provided:
The application submitted by the assessee was rejected via electronic communication dated 05.02.2020 due to the incorrect order-in-original number. The court noted that the rejection was based on a minor technical mistake, as the department was aware of the correct details.

3. Availability of Rectification Provisions under the SVS Scheme:
Section 127 of the SVS Scheme allows for the rectification of arithmetical or clerical errors within thirty days of issuing a statement indicating the amount payable. The court emphasized that the Designated Committee could have permitted the assessee to rectify the minor technical error, especially since the correct details were already provided to the department.

4. The Role and Jurisdiction of the Designated Committee Post the Last Date for Application Submission:
The court clarified that the Designated Committee does not become functus officio after the last date for application submission (15.01.2020). The committee retains jurisdiction to process applications filed within the stipulated time and to rectify errors as per Section 127. The rejection of the application on the ground of the last date was deemed inappropriate.

5. Legal Precedents and Their Applicability to the Case:
The court referred to several precedents where similar issues were considered. Notably, in Hitech Projects Private Limited vs. Union of India, the Gujarat High Court quashed the rejection and directed reconsideration. Similarly, in M/s. Sobha Limited vs. Union of India, the Punjab and Haryana High Court set aside the rejection and directed fresh consideration. These cases underscored that technicalities should not defeat the scheme's spirit.

6. Relief to be Granted to the Assessee:
Given the minor nature of the error and the spirit of the SVS Scheme, the court directed the Designated Committee to allow the assessee to rectify the error and reconsider the application on its merits. The rejection dated 05.02.2020 was set aside, and the Designated Committee was instructed to finalize the declaration within six months.

Conclusion:
The court emphasized that the SVS Scheme's spirit should not be defeated by technicalities. The Designated Committee was directed to permit rectification of the minor error and reconsider the application, ensuring that the assessee's declaration is processed on its merits. The appeals and connected applications were disposed of accordingly.

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