Pro Interactive Services INDIA PVT LTD vs. Commissioner Of Central Goods And Services Tax Delhi South & Anr.

Facts

The petitioner, Pro Interactive Services India Pvt. Ltd., filed a writ petition challenging communications dated February 13, 2020, and February 21, 2020. These communications rejected the petitioner's declarations filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, for waiver of interest and penalty for the period October 2013 to September 2016. The rejection was based on the ground that the declared liability did not match the liability shown in the returns. The petitioner argued that taxes were fully paid, and declarations were only for waiver of interest and penalty, aligning with a circular dated September 25, 2019. The petitioner also highlighted that declarations for a subsequent period (October 2016 to June 2017) were processed similarly after an oral hearing.

Held

The Court directed that the present writ petition be treated as a representation to Respondent No. 2. Respondent No. 2 was instructed to dispose of this representation on or before June 30, 2020. Crucially, the Court mandated that an opportunity of hearing be provided to an authorized representative of the petitioner on June 29, 2020, at 11:30 AM. The Court explicitly stated that all rights and contentions of the parties were left open, implying that no final decision on the merits of the dispute was made at this stage. The operative direction was to provide a hearing and a decision on the representation, addressing the procedural lapse of not affording a hearing earlier. The issue of whether the declarations were correctly filed or processed under the Scheme was not decided.

Key Issues

1. Whether the rejection of declarations filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, for waiver of interest and penalty, without affording an opportunity of hearing, is valid, particularly when the petitioner claims taxes were fully paid and declarations were made in accordance with relevant circulars? (Question of law and fact, concerning the interpretation and application of the Sabka Vishwas Scheme and related circulars). Petitioner's contentions: The petitioner argued that declarations were filed solely for waiver of interest and penalty, as the tax dues were fully paid. They relied on Circular No. 1071/9/2019-CX dated September 25, 2019, which they contended supported their declaration of nil tax dues in such cases. They further argued that in identical circumstances for a subsequent period, their declarations were processed after an oral hearing, and therefore, the respondents should have processed the declarations for the entire period in a consistent manner, not disjointedly. Respondents' contentions: The respondents, through their counsel, accepted notice and had no objection to the writ petition being treated as a representation to Respondent No. 2.