Diwakar Road Lines Vs Union of India and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court dismissed a writ petition filed by Diwakar Road Lines, challenging the rejection of its application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner, which operates air-conditioned and non-air-conditioned buses, was served a notice in 2016 regarding its service tax liability. It applied for tax settlement under the scheme but later learned that its application had been rejected. The petitioner argued that it was eligible for the scheme since a notice had been issued before June 30, 2019, making it a qualifying case under the scheme’s provisions.
The respondents, including the tax authorities, countered that the petitioner had relied on a letter issued by the Superintendent of Central Tax, Anantapur-2 GST Range, which was unauthorized and invalid. They further argued that the tax liability assessed in this letter was significantly lower than the actual dues determined through income tax records. Additionally, the authorities claimed the petitioner had presented conflicting financial figures to different departments, raising concerns about transparency. Given these discrepancies, the designated committee rejected the application.
The court analyzed the petitioner’s reliance on previous judicial precedents. A decision by the Division Bench of the Andhra Pradesh High Court in W.P. Nos. 16315 & 16539 of 2020 found that a letter quantifying service tax dues prior to June 30, 2019, could qualify a taxpayer under the scheme. However, the court in the present case noted that no valid quantification existed before the cutoff date. The Karnataka High Court in Jagadish Advertising v. Designated Committee (2020) had ruled that committees cannot reject applications based on reasons not prescribed in the statutory form. However, the court distinguished the present case, stating that the rejection was based on the petitioner submitting allegedly fabricated documents.
