Sabka Vishwas settlement and discharge certificate rendered ex parte service tax adjudication unsustainable under the dispute resolution scheme.

A service tax adjudication could not survive after the taxpayer settled the dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and received a discharge certificate. The record showed that the quantified amount was paid, the certificate was issued by the authority, and the respondents accepted this position. In that setting, the ex parte order-in-original based on alleged natural justice violations was not capable of being sustained once the underlying dispute had been resolved under the scheme, and the impugned order was quashed.

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Issues: Whether the impugned order was liable to be quashed in view of the petitioner having settled the service tax dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and having been issued a discharge certificate.

Analysis: The petition challenged the order-in-original on the ground of violation of natural justice. The record showed that the petitioner had invoked the Sabka Vishwas scheme, paid the quantified amount, and was issued a discharge certificate by the authority. The respondents verified the issuance of the discharge certificate and fairly accepted that the petition deserved to succeed. In these circumstances, the ex parte adjudication could not survive once the underlying dispute had already been settled under the scheme.

Conclusion: The impugned order was quashed and set aside in favour of the petitioner.

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