Court orders reconsideration of SVLDRS-1 rejection, emphasizing petitioner's right to hearing for fair determination.

The court set aside the rejection of Form SVLDRS-1 under the SVLDRS Scheme 2019, emphasizing the necessity of providing the petitioner with a hearing before determining payable amounts. The case was remanded to the committee for reconsideration with directions to afford the petitioner a hearing in line with principles of natural justice, ensuring compliance with statutory provisions and procedural fairness under the Scheme.

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Issues:
Challenge to tax levy under SVLDRS Scheme 2019, rejection of Form SVLDRS-1, duty to pay penalty and interest, opportunity of hearing not provided, interpretation of SVLDRS Scheme provisions.

Analysis:
The writ petition challenges the levy of tax claimed under Form SVLDRS-1, filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019. The petitioner contends that despite filing service tax returns late, they did not pay interest or penalty, applying for waiver under the SVLDRS Scheme. The rejection of the Form by the respondent without considering the Scheme's provisions or granting a hearing is disputed.

The petitioner, an assessee under the Finance Act 1994, availed the SVLDRS Scheme to resolve disputes related to service tax payments. The Scheme aimed to provide relief to eligible persons, excluding specific categories, and end existing disputes. The provisions of Sections 125 and 127 of the SVLDRS Scheme outline eligibility criteria for declarations and the process for verification and estimation of payable amounts.

The rejection of the petitioner's Form SVLDRS-1 without a hearing violated the statutory requirement under Section 127(3) of the SVLDRS Scheme, mandating an opportunity for the declarant to be heard before determining payable amounts. The failure to provide a hearing before imposing additional liabilities contradicted the benevolent nature of the Scheme and the principles of natural justice.

The judgment sets aside the rejection of the Form SVLDRS-1 and remands the case to the designated committee with directions to provide the petitioner with a hearing in accordance with the rules of natural justice. The committee is instructed to reconsider the case after hearing the petitioner and pass orders in compliance with the law.

In conclusion, the writ petition is allowed to the extent indicated, emphasizing the importance of providing an opportunity of hearing to the petitioner in matters concerning the SVLDRS Scheme 2019 to ensure procedural fairness and adherence to statutory requirements.

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