Ucc Infrastucture PVT.LTD.Through Its Director Mr.Monty R. Khushalani vs. Union Of INDIA, New Delhi And Ors

Held

The Court held that the rejection of the petitioner's declaration under the 'voluntary category' of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, was not justified. The Court reasoned that the summons for investigation were issued on August 30, 2019, which was after the cut-off date of June 30, 2019. Following its own precedent in M/s. New India Civil Erectors Private Limited, the Court stated that an inquiry, investigation, or audit initiated after June 30, 2019, would not act as a bar to filing a declaration under the 'voluntary disclosure' category. The Court also noted that the respondents failed to provide the petitioner with an opportunity of being heard, violating principles of natural justice. The impugned orders were quashed and set aside. The declaration forms were restored and remanded to the Joint Commissioner (respondent no.3) for a fresh decision, treating them as valid declarations under the 'voluntary disclosure' category. The respondents were directed to grant the petitioner a personal hearing and pass a reasoned order within eight weeks. The Court clarified that the respondents retain the power under Section 129(2)(c) to take action if material particulars in the declaration are found to be false within one year of the discharge certificate.

Facts

The petitioner, UCC Infrastructure Pvt. Ltd., filed a writ petition challenging orders dated December 9, 2020, and February 20, 2020, which rejected its declarations under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner submitted declarations under the 'voluntary category' for tax dues amounting to Rs. 36,24,108/- for the period September 1, 2015, to June 30, 2017. The respondents rejected these declarations, citing that an investigation had been initiated against the petitioner before they opted for the scheme. The petitioner contended that the summons for investigation were issued on August 30, 2019, which was after the scheme's cut-off date of June 30, 2019. Despite representations, the declarations were rejected, leading to the present writ petition.

Key Issues

1. Whether the rejection of the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, under the 'voluntary category' was justified on the ground that an investigation was initiated against the petitioner, when the summons for investigation were issued after the cut-off date of June 30, 2019? (Question of law) Petitioner's arguments: The petitioner argued that since the summons for investigation were issued on August 30, 2019, which is after the cut-off date of June 30, 2019, the investigation initiated post the cut-off date should not disqualify them from the 'voluntary category' of the scheme. They relied on the High Court's judgment in M/s. New India Civil Erectors Private Limited v/s. Union of India. Respondents' arguments: The respondents contended that even if summons were issued after June 30, 2019, their powers under Section 129(2)(c) of the scheme to continue investigations are not curtailed. They also argued that if particulars in the declaration are found false within one year of the discharge certificate, it would be presumed the declaration was never made, and proceedings would be instituted.