Construction company eligible for tax relief under Sabka Vishwas Scheme due to conclusive discharge certificate. No further penalty unless certificate recalled.

The court held that the petitioner, a construction company, was eligible under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, for relief from tax dues. The court emphasized that the discharge certificate issued under the scheme was conclusive, and no further duty or penalty was payable unless the certificate was recalled. As no investigation was initiated against the petitioner before the cut-off date of 30 June 2019, the court granted relief, allowed the writ petition, and made the rule absolute without costs.

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Issues:
Challenge to show cause notice regarding service tax eligibility under a legacy dispute resolution scheme.

Analysis:
1. The petitioner, a private limited company engaged in construction and development, applied under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, for relief from tax dues and waiver of interest and penalty under the Finance Act, 1994.

2. The petitioner declared amounts under Work Contract Service and Renting of Immovable Property for a specified period and paid the estimated amount as per the scheme, receiving a discharge certificate.

3. Subsequently, the petitioner received a show cause notice demanding a substantial sum towards service tax liability, citing an ongoing investigation by the GST Intelligence unit, challenging the petitioner's eligibility under the scheme.

4. The petitioner argued that the discharge certificate issued under the scheme is conclusive, and no further duty or penalty is payable unless the certificate is recalled, contending that only the Designated Committee can determine falsity in declarations.

5. The court deliberated on the jurisdiction of the Designated Committee post-issuance of the discharge certificate and concluded that even if the authorities had jurisdiction, the petitioner's declaration could not be deemed false, thus no action was warranted.

6. The court referred to previous decisions interpreting Section 125 of the Act, which stipulates that investigations must be pending as of a specific date to disqualify declarants under the voluntary disclosure category, emphasizing the relevance of the cut-off date of 30 June 2019.

7. Finding that no inquiry or investigation was initiated against the petitioner before 30 June 2019, the court held that the petitioner was eligible to apply under the scheme, granting relief and allowing the writ petition, making the rule absolute without costs.

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