w w w . L a w y e r S e r v i c e s . i n



Magnum Management and Services P Ltd. v/s Union of India & Others


Company & Directors' Information:- S. M. MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140AS2005PTC007642

Company & Directors' Information:- I SERVICES INDIA PRIVATE LIMITED [Active] CIN = U72900DL2003PTC118851

Company & Directors' Information:- MAGNUM LIMITED [Active] CIN = L74140GJ1992PLC016891

Company & Directors' Information:- S T SERVICES LTD [Active] CIN = L74140WB1989PLC047210

Company & Directors' Information:- M G F SERVICES LIMITED [Amalgamated] CIN = U65910DL1987PLC029599

Company & Directors' Information:- R S SERVICES PRIVATE LIMITED [Active] CIN = U65100DL1989PTC038061

Company & Directors' Information:- R S SERVICES PRIVATE LIMITED [Active] CIN = U74900DL1989PTC038061

Company & Directors' Information:- S J SERVICES PRIVATE LIMITED [Active] CIN = U74140DL1988PTC034427

Company & Directors' Information:- C & K MANAGEMENT LIMITED [Active] CIN = U91990TG2000PLC033293

Company & Directors' Information:- G K MANAGEMENT SERVICES (INDIA) LIMITED [Active] CIN = U74140TZ1999PLC009001

Company & Directors' Information:- AMP E - SERVICES PRIVATE LIMITED [Active] CIN = U51909MN2013PTC008361

Company & Directors' Information:- E M SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U93090MH2001PTC131924

Company & Directors' Information:- L M J SERVICES LTD [Active] CIN = L51226WB1983PLC035807

Company & Directors' Information:- L M J SERVICES LTD [Active] CIN = L93000WB1983PLC035807

Company & Directors' Information:- G K SERVICES PRIVATE LIMITED [Active] CIN = U65990MH1994PTC078529

Company & Directors' Information:- S M MANAGEMENT PVT LTD [Not available for efiling] CIN = U74140WB1992PTC002848

Company & Directors' Information:- S M MANAGEMENT PVT LTD [Not available for efiling] CIN = U74140WB1992PTC057260

Company & Directors' Information:- A K SERVICES PRIVATE LIMITED [Active] CIN = U74899MH1986PTC268851

Company & Directors' Information:- B V SERVICES PVT LTD [Active] CIN = U74140WB1991PTC050946

Company & Directors' Information:- I S A SERVICES PRIVATE LIMITED [Active] CIN = U74140JH1995PTC006387

Company & Directors' Information:- A G S MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U45208TG2011PTC077420

Company & Directors' Information:- MAGNUM MANAGEMENT AND SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2013PTC249011

Company & Directors' Information:- E I C SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC022426

Company & Directors' Information:- A H MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140DL2010PTC206683

Company & Directors' Information:- B J MANAGEMENT SERVICES LIMITED [Amalgamated] CIN = U74140WB2004PLC100864

Company & Directors' Information:- A C SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC070774

Company & Directors' Information:- H S SERVICES PRIVATE LIMITED [Active] CIN = U74900KA2014PTC074321

Company & Directors' Information:- G V INDIA SERVICES PRIVATE LIMITED [Active] CIN = U74900DL2010PTC212026

Company & Directors' Information:- A TO Z SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2007PTC168484

Company & Directors' Information:- O P T SERVICES INDIA PRIVATE LIMITED [Active] CIN = U63013DL1996PTC083397

Company & Directors' Information:- M K MANAGEMENT SERVICES PRIVATE LTD [Converted to LLP] CIN = U74899DL1987PTC029774

Company & Directors' Information:- P P SERVICES PVT LTD [Active] CIN = U70101WB1991PTC051423

Company & Directors' Information:- A P T SERVICES PRIVATE LIMITED [Amalgamated] CIN = U29219TG1999PTC031903

Company & Directors' Information:- S S SERVICES PVT LTD [Active] CIN = U51109AS1993PTC003956

Company & Directors' Information:- G & G SERVICES PRIVATE LIMITED [Active] CIN = U45201DL2012PTC230905

Company & Directors' Information:- P. C. I. MANAGEMENT SERVICES LIMITED [Active] CIN = U67100MH2002PLC137588

Company & Directors' Information:- C S MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140KA2004PTC035231

Company & Directors' Information:- A N Y SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071457

Company & Directors' Information:- N B SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1993PTC056484

Company & Directors' Information:- P C SERVICES PRIVATE LIMITED [Strike Off] CIN = U00894KA1985PTC006606

Company & Directors' Information:- E C H C MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74910TN2005PTC056137

Company & Directors' Information:- V D S MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL2008PTC174841

Company & Directors' Information:- M. V. S SERVICES INDIA PRIVATE LIMITED [Active] CIN = U93000DL2013PTC252172

Company & Directors' Information:- M S P R MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140TG2005PTC047415

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74120MH1988PTC099793

Company & Directors' Information:- S D SERVICES PVT LTD [Active] CIN = U51109AS1998PTC005293

Company & Directors' Information:- H S D MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U65921PB1997PTC015193

Company & Directors' Information:- N P MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U70100MH2003PTC143620

Company & Directors' Information:- H AND B SERVICES LIMITED [Strike Off] CIN = U72900MH2004PTC145775

Company & Directors' Information:- C & R SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74140KA1996PTC019645

Company & Directors' Information:- E AND A SERVICES (INDIA) PRIVATE LIMITED [Under Process of Striking Off] CIN = U51900MH1989PTC054373

Company & Directors' Information:- MAGNUM & COMPANY PRIVATE LIMITED [Strike Off] CIN = U51432TN2001PTC046884

Company & Directors' Information:- A. H. SERVICES PRIVATE LIMITED [Active] CIN = U74990MH2009PTC193917

Company & Directors' Information:- M E R I T SERVICES PRIVATE LIMITED [Strike Off] CIN = U51900MH1999PTC118445

Company & Directors' Information:- P F P SERVICES PRIVATE LIMITED [Active] CIN = U74900MH2009PTC293633

Company & Directors' Information:- W P MANAGEMENT INDIA PRIVATE LIMITED [Active] CIN = U40100TG2016PTC112006

Company & Directors' Information:- P F P SERVICES PRIVATE LIMITED [Active] CIN = U74900WB2009PTC139742

Company & Directors' Information:- U S MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74999WB2011PTC170355

Company & Directors' Information:- J. S. P. SERVICES PRIVATE LIMITED [Active] CIN = U63040DL1996PTC075731

Company & Directors' Information:- G. D. M MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74999HR2019PTC078073

Company & Directors' Information:- MAGNUM INDIA PVT LTD [Strike Off] CIN = U51909PB1984PTC006022

Company & Directors' Information:- INDIA SERVICES LIMITED [Liquidated] CIN = U99999TN1946PLC000976

Company & Directors' Information:- U M S SERVICES LIMITED [Active] CIN = U03210TZ1982PLC001208

Company & Directors' Information:- S R MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140MH2000PTC129839

Company & Directors' Information:- A T E SERVICES LIMITED [Strike Off] CIN = U74140MH2001PTC132923

Company & Directors' Information:- SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74140DL1996PTC078465

Company & Directors' Information:- G I SERVICES INDIA LIMITED [Active] CIN = U74140DL2008PLC184088

Company & Directors' Information:- E AND E SERVICES LIMITED [Strike Off] CIN = U65992KL1988PLC005094

Company & Directors' Information:- E E S MANAGEMENT SERVICES PVT LTD [Active] CIN = U74140TG1984PTC005010

Company & Directors' Information:- S R V N SERVICES PRIVATE LIMITED [Strike Off] CIN = U50200DL2004PTC124035

Company & Directors' Information:- B H SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74999MH2012FTC227035

Company & Directors' Information:- M M MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900DL2009PTC195088

Company & Directors' Information:- A R SERVICES PRIVATE LIMITED [Active] CIN = U00000DL2001PTC109578

Company & Directors' Information:- J AND J SERVICES PRIVATE LIMITED [Active] CIN = U51900MH1995PTC092554

Company & Directors' Information:- L B D SERVICES PRIVATE LIMITED [Active] CIN = U00359BR1991PTC004694

Company & Directors' Information:- S K A MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1985PTC021722

Company & Directors' Information:- Y H MANAGEMENT INDIA PRIVATE LIMITED [Strike Off] CIN = U93030MH2012PTC238901

Company & Directors' Information:- V M G MANAGEMENT PRIVATE LIMITED [Strike Off] CIN = U74140WB2011PTC160061

Company & Directors' Information:- A 2 Z E SERVICES PRIVATE LIMITED [Strike Off] CIN = U72200KA2006PTC039105

Company & Directors' Information:- M P SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U74999PN1999PTC013531

Company & Directors' Information:- B I N A R Y SERVICES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U72900DL2000PTC103072

Company & Directors' Information:- M C SERVICES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U74999PN1999PTC013532

Company & Directors' Information:- D & D SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U51909DL1998PTC093967

Company & Directors' Information:- M B MANAGEMENT PVT LTD [Strike Off] CIN = U99999MH1981PTC025914

Company & Directors' Information:- S C L SERVICES PRIVATE LIMITED [Active] CIN = U63012TN2001PTC046650

Company & Directors' Information:- A B SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL1998PTC093545

Company & Directors' Information:- G P SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC037683

Company & Directors' Information:- D C MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U70101DL1998PTC094035

Company & Directors' Information:- I. Q. MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74120WB2007PTC116624

Company & Directors' Information:- T S SERVICES PRIVATE LIMITED [Strike Off] CIN = U85320WB2003PTC095712

Company & Directors' Information:- R P MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999WB2008PTC122192

Company & Directors' Information:- L Y D MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900HR2012PTC045158

Company & Directors' Information:- A. S. V. P. SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999HR2014PTC052304

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Not available for efiling] CIN = U00893KA1988PTC009632

Company & Directors' Information:- R AND T SERVICES PRIVATE LTD. [Strike Off] CIN = U72501DL1998PTC096640

Company & Directors' Information:- S S SERVICES PVT LTD [Strike Off] CIN = U74140WB1988PTC044009

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Not available for efiling] CIN = U99999MH1996PTC099793

Company & Directors' Information:- S. U. MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140RJ2012PTC041109

Company & Directors' Information:- MAGNUM MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140TN1997PTC037771

Company & Directors' Information:- S S D SERVICES PRIVATE LIMITED [Active] CIN = U74910RJ1996PTC012694

Company & Directors' Information:- V & V SERVICES PRIVATE LIMITED [Strike Off] CIN = U74990MH2010PTC206211

Company & Directors' Information:- D S SERVICES PRIVATE LIMITED [Strike Off] CIN = U65923MH2012PTC226482

Company & Directors' Information:- P AND I SERVICES PRIVATE LIMITED [Active] CIN = U63090MH1981PTC024997

Company & Directors' Information:- F F C SERVICES PRIVATE LIMITED [Active] CIN = U74900PN2014PTC153348

Company & Directors' Information:- D P M C K MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2002PTC135462

Company & Directors' Information:- R. B. SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2017PTC302692

Company & Directors' Information:- Q C SERVICES PRIVATE LIMITED [Active] CIN = U74999PN2013PTC148110

Company & Directors' Information:- A F MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120MH2014PTC256072

Company & Directors' Information:- W P MANAGEMENT INDIA PRIVATE LIMITED [Active] CIN = U45201TG2016PTC112006

Company & Directors' Information:- V & U MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140TG2011PTC074925

Company & Directors' Information:- Y & D MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140TG2014PTC094741

Company & Directors' Information:- B S K A SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900WB2013PTC198627

Company & Directors' Information:- S N SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900JK2014PTC004110

Company & Directors' Information:- R N SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900CH2013PTC034757

Company & Directors' Information:- R M E-SERVICES PRIVATE LIMITED [Active] CIN = U72300DL2007PTC166470

Company & Directors' Information:- C & A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL2007PTC159565

Company & Directors' Information:- A & Y MANAGEMENT SERVICES PRIVATE LIMITED [Converted to LLP] CIN = U74140DL2007PTC171421

Company & Directors' Information:- K R A MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140DL2012PTC233124

Company & Directors' Information:- A Y SERVICES PRIVATE LIMITED [Active] CIN = U74140DL2012PTC239759

Company & Directors' Information:- J N D SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL2014PTC264620

Company & Directors' Information:- V. S. SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2012PTC233958

Company & Directors' Information:- S & V SERVICES PRIVATE LIMITED [Active] CIN = U74999DL2015PTC287145

Company & Directors' Information:- R S V MANAGEMENT & SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2010PTC203427

Company & Directors' Information:- A R J SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2015PTC286948

Company & Directors' Information:- L & K MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000DL2010PTC205793

Company & Directors' Information:- M K R SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000DL2012PTC242159

Company & Directors' Information:- I & J MANAGEMENT PRIVATE LIMITED [Active] CIN = U93000DL2016PTC292375

Company & Directors' Information:- M A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC138121

Company & Directors' Information:- G W SERVICES PVT LTD [Strike Off] CIN = U79140DL2001PTC111194

Company & Directors' Information:- B 2 B SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140HR2013PTC049213

Company & Directors' Information:- I MAGNUM SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900KA2014PTC075571

Company & Directors' Information:- R K SERVICES PRIVATE LIMITED [Active] CIN = U45200HR2007PTC041783

Company & Directors' Information:- V MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U82320KA2004PTC035168

Company & Directors' Information:- D P B MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140GJ2009PTC057658

Company & Directors' Information:- V D G MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140GJ2013PTC077221

Company & Directors' Information:- A. R. T. SERVICES PRIVATE LIMITED [Active] CIN = U51900GJ2009PTC056248

Company & Directors' Information:- H AND S MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140KL2005PTC018253

Company & Directors' Information:- B 9 N SERVICES PRIVATE LIMITED [Active] CIN = U74900KL2012PTC032087

Company & Directors' Information:- V J SERVICES PRIVATE LIMITED [Strike Off] CIN = U29242GJ2013PTC074510

Company & Directors' Information:- N I SERVICES PRIVATE LIMITED [Strike Off] CIN = U64202KL2000PTC014355

Company & Directors' Information:- 7-A SERVICES PRIVATE LIMITED [Active] CIN = U74999DL2019PTC359011

Company & Directors' Information:- L K E SERVICES PRIVATE LIMITED [Active] CIN = U74999RJ2021PTC073635

Company & Directors' Information:- G AND G MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140CH1996PTC018896

Company & Directors' Information:- F I SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2001PTC113001

Company & Directors' Information:- C R D SERVICES PVT LTD [Active] CIN = U72300AS1988PTC003097

Company & Directors' Information:- B I M SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140KA1974PTC002694

Company & Directors' Information:- T Q M SERVICES PVT. LTD. [Strike Off] CIN = U74140DL1999PTC101341

Company & Directors' Information:- B AND M SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140MH1977PTC019880

Company & Directors' Information:- D AND A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74110MH1995PTC090182

Company & Directors' Information:- P. A. MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140CH2007PTC030834

Company & Directors' Information:- M J B E-SERVICES PRIVATE LIMITED. [Strike Off] CIN = U72400DL2006PTC150832

Company & Directors' Information:- UNION COMPANY PRIVATE LIMITED [Dissolved] CIN = U99999KA1942PTC000292

Company & Directors' Information:- M A S MANAGEMENT PRIVATE LIMITED [Strike Off] CIN = U74999DL1987PTC029434

Company & Directors' Information:- P M MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U99999MH1972PTC015534

Company & Directors' Information:- L AND T (MANAGEMENT) LIMITED [Dissolved] CIN = U99999MH1946PTC004765

Company & Directors' Information:- MANAGEMENT SERVICES PVT LTD [Strike Off] CIN = U99999DL2000PTC904070

    Writ Petition No. 2421 of 2020

    Decided On, 01 March 2021

    At, High Court of Judicature at Bombay

    By, THE HONOURABLE MR. JUSTICE UJJAL BHUYAN & THE HONOURABLE MR. JUSTICE MILIND N. JADHAV

    For the Petitioner: Ishaan Patkar a/w Riya Jain i/by Jindagi Shah, Advocates. For the Respondents: R1, Devesh Tripathi, R2 & R3, Pradeep S. Jetly, Senior Counsel a/w J.B. Mishra, Maya Mazumdar, Advocates, Shruti D. Vyas - 'B' Panel Counsel.



Judgment Text

Oral Judgment: (Ujjal Bhuyan, J.)1. Heard Mr. Ishaan Patkar, learned counsel for the petitioner; Mr. Tripathi, learned counsel for respondent No. 1; and Mr. Jetly, learned senior counsel for respondent Nos. 2 and 3.2.By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 21.01.2020 passed by the designated committee rejecting the declaration of the petitioner dated 25.12.2019 filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and further seeks a direction to the respondents to reconsider the declaration of the petitioner dated 25.12.2019 and grant the relief(s) under the aforesaid scheme. Additional prayer made by the petitioner is for quashing of show cause cum demand notice dated 24.12.2020 issued by Joint Commissioner, CGST & CX, Belapur Commissionerate.3. Petitioner is a private limited company engaged in the business of supplying unskilled, semi-skilled and skilled manpower for security services, management services etc. Being a service provider, it was registered as such under Chapter V of the Finance Act, 1994.4. Central Government introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (briefly "the scheme" hereinafter) vide the Finance (No. 2) Act, 2019 for settlement of legacy disputes pertaining to service tax and central excise providing for substantial reliefs to the declarants subject to eligibility.5. In terms of the scheme, petitioner submitted declaration dated 25.12.2019 under the category of 'voluntary disclosure' covering the period from 01.04.2016 to 31.03.2017 declaring service tax dues for the said period at Rs. 39,26,235.006. However, vide email dated 21.01.2020, the aforesaid declaration of the petitioner was rejected on the ground of ineligibility. Reason for rejection was mentioned as being ineligible under section 125(1)(f)(i) read with section 121(m) of the Finance (No. 2) Act , 2019.7. When the petitioner inquired with the authorities the justification for such rejection, it was informed that because of letter dated 24.07.2019 which was issued to the petitioner by the Assistant Commissioner, Division-I, CGST & CX, Belapur Commissionerate for the period 2015-16 declaration of the petitioner was rejected on the ground of ineligibility.7.1. In so far letter dated 24.07.2019 is concerned, it is stated that upon comparison of the service tax return of the petitioner with its income tax return for the financial year 2015-16 certain differences were noticed in the figures for which petitioner was required to explain and also to submit the documents mentioned therein.8. Petitioner submitted representation on 03.02.2020 before the Assistant Commissioner, CGST & CX, Belapur Commissionerate explaining and contending that it cannot be treated as ineligible and requested the said authority to withdraw the rejection order and thereafter to accept the declaration filed by the petitioner. However, no decision was taken on the said representation.9. Aggrieved, present writ petition came to be filed assailing rejection of declaration.10. During pendency of the writ petition, Joint Commissioner of CGST & CX, Belapur Commissionerate issued show cause cum demand notice dated 24.12.2020 calling upon the petitioner to show cause as to why service tax amounting to Rs. 54,40,259.00 for the period 2015-16, 2016-17 and 2017-18 (upto June 2017) should not be paid along with interest and penalty.10.1. By way of amendment, the above show cause cum demand notice has been brought on record and has also been impugned.11. Responding to the notice issued by the court, respondents have filed their reply affidavit. Stand taken in the reply affidavit is that petitioner had filed declaration under the scheme on 25.12.2019 under the category of 'voluntary disclosure' declaring amount of service tax payable at Rs. 39,25,235.00. The declaration was rejected on 21.01.2020 as the petitioner was not eligible to file declaration under the category of 'voluntary disclosure'. In this connection, reference has been made to section 121(m) of the Finance (No. 2) Act, 2019 and section 125(1)(e) thereof to contend that petitioner was not eligible to file declaration under the category of 'voluntary disclosure'. It is further stated that under the scheme, there is no requirement or provision for giving opportunity of personal hearing to a declarant before rejection.11.1. Record of the petitioner for the last five years i.e from 2015-16 may be examined by the respondents under section 73(1) of the Finance Act, 1994. This period includes the financial year 2016-17 in respect of which petitioner had filed the declaration. The proceedings which are underway may incorporate the period 2016-17 thus rendering the petitioner ineligible.12. Learned counsel for the petitioner submits that impugned rejection of the declaration of the petitioner is in violation of the principles of natural justice as no opportunity of hearing was granted to the petitioner before such rejection. That apart, no reasons have been assigned except the bald statement about ineligibility of the petitioner. An unreasoned order being in violation of the principles of natural justice is certainly arbitrary and unreasonable and is therefore liable to be appropriately interfered with by this Court. Learned counsel has referred to various provisions of the scheme where from he contends that the declaration of the petitioner for the period 2016-17 could not have been rejected by the respondents on the ground that the investigation presently underway may incorporate the period 2016-17 in future. Such a ground is no ground at all in the eye of law for rejection. In support of his contentions, learned counsel for the petitioner has filed a compilation of documents and judgments as well as written submissions.13. On the other hand, Mr. Jetly, learned senior counsel for the respondents has placed reliance on the averments made in the reply affidavit and submits that the designated committee was justified in rejecting the declaration of the petitioner as being ineligible. Therefore, no interference is called for.14. Submissions made by learned counsel for the parties have received the due consideration of the court.15. At the outset, we may advert to certain provisions of the scheme as contained in the Finance (No. 2) Act, 2019 relating to making of declaration under the category of 'voluntary disclosure'.16. Section 121(m) defines the expression "enquiry or investigation" under any of the indirect tax enactments to mean search of premises; issuance of summons; requiring the production of accounts, documents or other evidence and recording of statements.16.1. Section 123 deals with tax dues as understood under the scheme. As per section 123(d), where the amount has been voluntarily disclosed by the declarant, then tax dues would mean the total amount of duty stated in the declaration.16.2. Reliefs available under the scheme are dealt with in section 124. As per section 124(1)(e), subject to the conditions specified in sub-clause (2), where the tax dues are payable on account of a voluntarily disclosure by the declarant, then, no relief shall be available with respect to tax dues. Sub-section (2) says that relief calculated under sub-section (1) shall be subject to the condition that any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit shall be deducted when issuing the statement indicating the amount payable by the declarant. However, as per the proviso, if the amount of predeposit or deposit exceeds the amount payable by the declarant, the declarant would not be entitled to any refund.16.3. Section 125 deals with eligibility to make declaration under the scheme. As per sub-section (1) of section 125, all persons shall be eligible to make a declaration under the scheme except those who are specifically excluded under clauses (a) to (h). From the wordings of sub-section (1) of section 125, it is evident that under the scheme, eligibility is the norm and ineligibility is the exception. In so far voluntary disclosure is concerned, ineligibility is dealt with in clause (f)(i) which says that a 8 of person after being subjected to any enquiry or investigation or audit would be ineligible to make a voluntary disclosure.16.4. Section 126 deals with verification of declaration by designated committee. Proviso to sub-section (1) clarifies that no such verification shall be made in a case where voluntary disclosure of an amount of duty has been made by the declarant.16.5. Section 129 provides that every discharge certificate issued under section 126 with respect to the amount payable under the scheme shall be conclusive as to the matter and time period stated therein. Section 129(2)(c) says that notwithstanding anything contained in sub-section (1), in a case of voluntary disclosure where any material particular furnished in the declaration is subsequently found to be false within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted.16.6. Under section 131, for removal of doubts, it has been clarified that nothing contained in the scheme shall be construed as conferring any benefit, concession or immunity 9 of on the declarant in any proceedings other than those in relation to the matter and time period in which the declaration has been made.17. We may also refer to circular dated 25.09.2019 issued by the Central Board of Direct Taxes and Customs (briefly "the Board" hereinafter). In clause (vi) of paragraph 2, it is stated that in a case of filing declaration under the category of 'voluntary disclosure', whether benefit of the scheme would be available to a declarant in a case where documents like balance sheet, profit and loss account etc are called for by the department, Board has clarified that in such a case, the designated committee may take a view on merit, taking into account the facts and circumstances of the case as to whether provisions of section 125(1)(f) would be attracted or not.18. Board has also prepared a set of Frequently Asked Questions (FAQs). Question No. 59 and the answer given thereon are as under:-"Q. 59 Although I have not been subjected to any search of my premises or investigation of any kind as per my knowledge I have recently received a letter from the department asking for some documents like balance sheets and Profit and loss accounts of certain years. I want to make a voluntary declaration with regard to the same period. Am I eligible?Ans. The letter may have been sent to you by the department as a result of a specific intelligence input as pert of an enquiry or investigation or it may be with the aim of making a preliminary assessment as to whether or not an enquiry or investigation is warranted. This would depend on the facts and circumstances of each case. You can make a declaration. However the eligibility will be decided on a case to case basis by the designated committee."19. Thus, we find that for determining eligibility under the category of 'voluntary disclosure', a great deal of discretion is vested on the designated committee, who has to decide eligibility on a case to case basis. Needless to say, when a discretion is conferred upon an authority to decide an issue which has civil consequences upon the party concerned, such discretion has to be exercised in a just, fair and reasonable manner complying with the principles of natural justice. Thus, while deciding eligibility, the designated committee is required to consider all relevant materials and also hear the concerned declarant.20. Having held so, let us deal with the contention of the petitioner that before a declaration is rejected, an opportunity of hearing should be granted to the declarant. Though we do not find any such express provision in the scheme laying down requirement of hearing before rejection of the declaration, we find from section 127 more particularly under sub-sections (3) and (4) thereof that if the designated committee upon verification, determines the amount payable by the declarant to be higher than what is declared by the declarant, then an opportunity of hearing should be granted to a declarant. This coupled with what we have discussed in paragraph 19 above, makes hearing before rejection obligatory.21. This aspect of the matter was gone into by this Court in Thought Blurb Vs. Union of India (2020 SCC OnLine Bom 1909). It has been held that in a situation where the amount estimated by the designated committee is in excess of the amount declared by the declarant, an opportunity of hearing is required to be given by the designated committee to the declarant, then it would be in complete defiance of logic and contrary to the very object of the scheme to outrightly reject a declaration on the ground of being ineligible. Summary rejection of a declaration without affording any opportunity of hearing to the declarant would be in violation of the principles of natural justice impeaching the decision making process thus rendering the decision invalid in law. It has been held in paragraph Nos. 51 and 52 as under:-"51. We have already discussed that under sub sections (2) and (3) of section 127 in a case where the amount estimated by the Designated Committee exceeds the amount declared by the declarant, then an intimation has to be given to the declarant in the specified form about the estimate determined by the Designated Committee which is required to be paid by the declarant. However, before insisting on payment of the excess amount or the higher amount the Designated Committee is required to give an opportunity of hearing to the declarant. In a situation when the amount estimated by the Designated Committee is in excess of the amount declared by the declarant an opportunity of hearing is required to be given by the Designated Committee to the declarant, then it would be in complete defiance of logic and contrary to the very object of the scheme to outrightly reject an application (declaration) on the ground of being ineligible without giving a chance to the declarant to explain as to why his application (declaration) should be accepted and relief under the scheme should be extended to him. Summary rejection of an application without affording any opportunity of hearing to the declarant would be in violation of the principles of natural justice. Rejection of application (declaration) will lead to adverse civil consequences for the declarant as he would have to face the consequences of enquiry or investigation or audit. As has been held by us in Capgemini Technology Services India Limited (supra) it is axiomatic that when a person is visited by adverse civil consequences, principles of natural justice like notice and hearing would have to be complied with. Non-compliance to the principles of natural justice would impeach the decision making process rendering the decision invalid in law.52. We have one more reason to take such a view. As has rightly been declared by the Hon'ble Finance Minister and what is clearly deducible from the statement of object and reasons, the scheme is a one time measure for liquidation of past disputes of central excise and service tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. The basic thrust of the scheme is to unload the baggage of pending litigations centering around service tax and excise duty. Therefore the focus is to unload this baggage of pre-GS

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T regime and allow business to move ahead. We are thus in complete agreement with the views expressed by the Delhi High Court in Vaishali Sharma Vs. Union of India, WP(C) No. 4763 of 2020 decided on 05.08.2020 that a liberal interpretation has to be given to the scheme as its intent is to unload the baggage relating to legacy disputes under central excise and service tax and to allow the business to make a fresh beginning."22. Since we find that impugned rejection of the declaration of the petitioner is in violation of the principles of natural justice which has impacted the decision making process thus rendering the decision invalid, it may not be necessary for us to enter into the merits of the challenge as to whether the declaration of the petitioner was in fact valid or not under the category of 'voluntary disclosure'. This is a matter which should be best left to the designated committee to decide after granting opportunity of hearing to the petitioner.23. Consequently we set aside the order dated 21.01.2020 and direct the designated committee to decide afresh the declaration of the petitioner dated 25.12.2019 in terms of the scheme under the category of 'voluntary disclosure' after giving due opportunity of hearing. The date, time and place of hearing shall be intimated to the petitioner. The entire exercise shall be carried out within a period of eight weeks from the date of receipt of a copy of this order.24. All contentions of the parties are kept open.25. Till such decision is taken by the designated committee, respondents shall not proceed further with the show cause cum demand notice dated 24.12.2020.26. With the above directions, writ petition is disposed of. However, there shall be no order as to costs.
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