Court quashes orders due to lack of reasons under SVLDRS Scheme, stresses transparency and compliance

The court found that the Respondents failed to provide meaningful reasons for rejection under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019, leading to unnecessary litigation. Consequently, the court quashed the impugned orders/communications and directed the Respondents to provide discernible reasons in Form SVLDRS-3. If immediate issuance was not feasible, the Respondents were allowed to pass a separate order with reasons within eight weeks. This decision aimed to uphold administrative discipline and ensure compliance with the statutory requirement of providing reasons for rejection, emphasizing the importance of transparency in the resolution process.

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Issues:
Absence or inadequacy of reasons for rejection of applications under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019.

Analysis:
The petitions raised a common issue regarding the absence or inadequacy of reasons for rejecting the Petitioners' applications under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019. The Finance Act, 2019 introduced this scheme, applicable to Customs, Central Excise, and Service Tax matters. The relevant sections of the Finance Act outline the procedure for dealing with declarations by eligible persons. Section 127 specifically addresses the issue of statements by the designated committee, including the issuance of estimates and providing an opportunity for the declarant to be heard before issuing the final statement. The scheme requires the remarks column in Form SVLDRS-3 to include reasons for rejection.

The Petitioners had applied under the scheme by filing declarations and received responses in Form SVLDRS-3. However, in some cases, the remarks column was either blank or contained unclear reasons for rejection. The court highlighted that the Designated Committee is obligated to provide discernible reasons for rejection as part of the statutory scheme. The court emphasized the importance of providing reasons to ensure the opportunity for the declarant to challenge the estimate and maintain the integrity of the hearing process.

The court found that the Respondents failed to provide meaningful reasons in the remarks column, leading to unnecessary litigation. Consequently, the court quashed the impugned orders/communications and directed the Respondents to fill up the remarks column with discernible reasons in Form SVLDRS-3. If immediate issuance of Form SVLDRS-3 was not feasible, the Respondents were permitted to pass a separate order providing reasons for rejection within eight weeks. This action aimed to uphold administrative discipline and ensure compliance with the statutory requirement of providing reasons for rejection under the scheme.

In conclusion, the court disposed of the writ petitions by emphasizing the importance of providing clear and discernible reasons for rejection under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019, to facilitate a fair and transparent resolution process for the declarants.

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