Court grants petition challenging Sabka Visvas Scheme rejection for lack of reasoning. Procedural fairness emphasized.

The court allowed the writ petition challenging the rejection of an application under the Sabka Visvas Scheme, 2019 due to lack of reasoning provided by the respondent. The court emphasized the importance of procedural fairness and adherence to eligibility criteria, noting that the petitioner had quantified tax liability before the specified date and demonstrated willingness to resolve the tax dispute. Despite delays in communication, the court held that the petitioner should be eligible for benefits under the scheme, highlighting the violation of natural justice in the rejection process.

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Issues:
The judgment concerns the rejection of an application under the Sabka Visvas (Legacy Dispute Resolution) Scheme, 2019 by the 1st respondent without providing reasons for the rejection. The main issue revolves around the quantification of the tax liability of the petitioner before the specified date of 30.06.2019.

Issue 1 - Lack of Reasoning in Rejection:
The petitioner challenged the communication dated 07.01.2020 where the 1st respondent rejected the application filed under the Sabka Visvas Scheme without specifying any reasons for the rejection. The impugned communication failed to provide any justification for the denial of the petitioner's application, raising concerns about procedural fairness.

Issue 2 - Quantification of Tax Liability:
The crux of the matter lies in the quantification of the tax liability of the petitioner before the deadline of 30.06.2019. The respondent cited the audit department's failure to qualify the amount due from the petitioner by the specified date as the basis for rejection. However, subsequent communications revealed that the tax liability was quantified at Rs. 56,46,036/- on 31.05.2019, slightly higher than the amount declared by the petitioner in the application.

Issue 3 - Eligibility for Scheme Benefits:
The petitioner contended that despite the delay in communicating the exact amount due, the benefit of the Sabka Visvas Scheme should still be extended. The petitioner's declaration of a higher amount than the quantified sum by the Audit Department on a later date, along with the clarification in Circular No.1071/4/2019-CX, supported the argument that the petitioner should be eligible for the scheme.

In the detailed analysis, the court noted that the rejection lacked substantive reasoning, which violated the principles of natural justice. The communication from the audit department quantifying the tax liability before the cutoff date of 30.06.2019 indicated that the petitioner had met the requirement for availing benefits under the Sabka Visvas Scheme. Despite the delay in formal communication of the exact amount due, the petitioner's proactive declaration of a higher sum demonstrated willingness to resolve the tax dispute. Therefore, the court allowed the writ petition, emphasizing the importance of procedural fairness and adherence to the scheme's eligibility criteria.

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