Clarificatory circulars can override narrow procedural objections and support reconsideration of legacy dispute scheme declarations.

Declarations under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could not be rejected merely because the related challenge was not strictly pursuant to a show-cause notice, where a binding circular clarified that similarly situated persons were eligible to file declarations. The circular was treated as clarificatory and therefore binding on the department, making the narrow ground for rejection unsustainable. The rejection orders were set aside, and the declarations were directed to be reconsidered under the Scheme, subject to the petitioners satisfying the remaining scheme conditions.

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Issues: Whether the petitioners' declarations under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could be rejected on the ground that the related challenge before the Supreme Court was not strictly pursuant to a show-cause notice, when the Central Board circular clarified that such persons were eligible to avail the Scheme.

Analysis: The circular relied upon specifically addressed a situation where retail members had faced proceedings in relation to service tax on renting of immovable property and stated that persons similarly situated were allowed to file declarations under the Scheme and avail its benefits. The circular was treated as clarificatory in nature and therefore binding on the department. On that basis, the rejection of the declarations on the narrow ground adopted by the authority was held unsustainable. At the same time, the petitioners were directed to comply with the remaining conditions of the Scheme before availing its benefits.

Conclusion: The rejection of the declarations was set aside and the petitioners were held entitled to have their declarations reconsidered under the Scheme, not on the ground on which they had been rejected.

Final Conclusion: The writ petitions succeeded to the extent of invalidating the impugned rejection orders and requiring reconsideration of the declarations in accordance with the Scheme and the binding circular.

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