Sabka Vishwas eligibility cannot be rejected mechanically; clarificatory circulars must be applied before deciding entitlement.

A declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 cannot be rejected mechanically solely because the show cause notice was issued after 30 June 2019. The Bombay HC noted that clarificatory Circular No. 1074/07/2019-CX required the authority to examine whether the case could still fall within the arrears category if the circular's conditions were met. As the rejection showed no application of mind and gave no reasons on eligibility, the matter was directed for fresh consideration by the Central Board of Indirect Taxes and Customs on the facts placed before it.

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Issues: Whether the rejection of the declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, solely on the ground that the show cause notice was issued after 30 June 2019, was valid in the light of the clarificatory circular and whether the matter required reconsideration by the Board.

Analysis: The rejection was found to be mechanical and based only on the date of the show cause notice, without any application of mind to the clarificatory Circular No. 1074/07/2019-CX. The circular's clause 2(viii) contemplated that cases where show cause notices were issued on or after 1 July 2019 could still fall within the scheme under the arrears category if other conditions were satisfied. The Court noted that the competent authority ought to have examined whether the petitioner's case satisfied those conditions, instead of rejecting the declaration without reasons. In view of the circular's clause 3, the Court considered it appropriate that the Board itself decide the petitioner's entitlement on the facts placed before it.

Conclusion: The rejection was not sustained as a reasoned determination of eligibility, and the matter was required to be decided afresh by the Central Board of Indirect Taxes and Customs.

Final Conclusion: The petition was disposed of by directing the Board to examine the petitioner's representation and take a decision within the stipulated time.

Ratio Decidendi: A declaration under a statutory relief scheme cannot be rejected mechanically by ignoring a clarificatory circular that may extend eligibility and must be considered on its facts by the competent authority.

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