Fresh Examination Ordered in Sabka Vishwas Scheme Case to Ensure Procedural Fairness

The court ordered a fresh examination by the Designated Committee in a case concerning the rejection of a petitioner's declaration under the Sabka Vishwas Scheme. The Committee was directed to reexamine the matter, provide a hearing to the petitioner, and treat the writ petition as a representation for expediency. Procedural fairness and principles of natural justice were emphasized, highlighting the importance of considering all relevant factors, including circulars and legal provisions. The judgment underscores the significance of providing parties with a fair opportunity to present their case and addressing any shortcomings in the initial decision-making process.

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Issues:
Petitioner's eligibility for Sabka Vishwas Scheme benefits, rejection of declaration without hearing, authority of Designated Committee, waiver of interest under the Scheme, and costs of the petition.

Analysis:
The petitioner sought relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, after their declaration was rejected without a hearing. The petitioner had delayed service tax payments from 2013-2014 to 2017-2018 and deposited the amount upon notice, incurring interest. The interest liability of Rs 42,06,417 led to the filing of a declaration under the Scheme, which was rejected by the Designated Committee. The petitioner argued that since the tax liability was paid before June 30, 2019, interest should be waived, citing relevant circulars.

The court noted that the rejection lacked consideration of circulars impacting the case and ordered a fresh examination by the Designated Committee. The Committee was directed to reexamine the matter, provide a hearing to the petitioner, and treat the writ petition as a representation for expediency. The Committee must notify the petitioner of the hearing details, allowing for videoconferencing if needed. The judgment disposed of the writ petition accordingly, with the pending application closed.

This judgment highlights the importance of procedural fairness and the principles of natural justice in administrative decisions under the Sabka Vishwas Scheme. It emphasizes the need for authorities to consider all relevant factors, including circulars and legal provisions, before making determinations that impact the rights of taxpayers. The court's decision to remit the matter for a fresh examination underscores the significance of providing parties with a fair opportunity to present their case and address any shortcomings in the initial decision-making process.

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