Daljeet Singh Gill Vs Union of India & Ors. (Delhi High Court)
Delhi High Court ruled that the absence of proof of service of notice cannot be a ground to presume a pending investigation and disqualify a taxpayer under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The case involved Daljeet Singh Gill, who sought relief under the Scheme for unpaid service tax liabilities for FY 2015-16 and 2016-17. However, his application was rejected without explanation. A subsequent show cause notice issued on December 31, 2020, alleged a tax liability of Rs. 11,26,937 along with penalties. The petitioner challenged the rejection and the show cause notice, arguing that no valid basis for disqualification was provided.
During the proceedings, the tax authorities relied on notices dated October 2019 and clauses 125(1)(e) and 125(1)(f) of the Scheme, which bar applicants under certain conditions, including pending investigations. However, the court found that there was no conclusive proof of service of the October 2019 notice. The department admitted that it lacked original dispatch records or evidence that the petitioner was notified in time. In the absence of such proof, the court held that the petitioner could not be disqualified under the Scheme, as an investigation must be demonstrably pending at the time of application.
