{"id":9010,"date":"2026-05-08T17:19:40","date_gmt":"2026-05-08T11:49:40","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=9010"},"modified":"2026-05-09T07:21:17","modified_gmt":"2026-05-09T01:51:17","slug":"sc-sets-aside-svldrs-3-demand-enhancement-without-hearing","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/sc-sets-aside-svldrs-3-demand-enhancement-without-hearing","title":{"rendered":"SC Sets Aside SVLDRS-3 Demand Enhancement Without Hearing"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000419303\/svldrs-3-demand-enhancement-without-notice-after-30-days-of-proceedings-closure-violated-natural-justice-fresh-hearing-needed-sc\">Dinesh Kalway vs. Union of India (2026) 42 Centax 38 (S.C.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>B.V. Nagarathna<\/strong> &amp; <strong>Ujjal Bhuyan,<\/strong> JJ.<\/li>\n<li><strong>Shri Rajat Srivastava, Ms Niharika Singh, Ms Chamundeshwari Pemmasani, Ms Arlene Noronha,<\/strong> Advocates &amp; <strong>Ms Aditi Anil Dani,<\/strong> AOR, for the Petitioner.<\/li>\n<li><strong>S\/Shri N. Venkataraman,<\/strong> A.S.G., <strong>V.C. Bharathi, Suyash Pande, B.K. Satija, Gaurav Kumar Meghwal, Shashank Bajpai,<\/strong> Advocates &amp; <strong>Gurmeet Singh Makker,<\/strong> AOR, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee was issued a show cause notice raising a demand for Service Tax along with CENVAT credit adjustments and a penalty for delayed payment. The adjudicating authority passed an order revising the demand, resulting in a reduction of the total liability. Thereafter, the assessee opted for settlement under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and filed the prescribed declaration before the designated committee. The designated committee accepted the declaration and issued Form SVLDRS-3, determining the amount payable, which was paid by the assessee. After closure of the settlement process, and after expiry of thirty days from the date of closure of proceedings before the designated committee, the amount determined in Form SVLDRS-3 was enhanced without issuing any notice or granting any opportunity of hearing to the assessee. The assessee challenged this enhancement before the High Court, which upheld the action and dismissed the writ petition as well as the review petition. The matter was thereafter carried before the Hon\u2019ble Supreme Court.<\/p>\n<h2><em>Supreme Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Supreme Court held that the enhancement of the amount determined in Form SVLDRS-3 without issuing any notice or granting an opportunity of hearing was contrary to the principles of natural justice. It was held that the designated committee could not have unilaterally enhanced the amount behind the back of the assessee, and it was required to issue notice and provide an opportunity to respond before making any change. Accordingly, the enhanced demand was set aside and the matter was restored before the designated committee for fresh consideration after granting reasonable opportunity of hearing.<\/p>\n<h2><em>List of Cases Reviewed<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2023)%209%20Centax%20150%20(M.P.)&amp;itemType=AP\">Dinesh Kalway v. Union of India<\/a> \u2014 (2023) 9 Centax 150 (M.P.) \u2014 Reversed [Paras 4, 7]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2025)%2037%20Centax%20424&amp;itemType=AP\">Dinesh Kalway v. Union of India<\/a> \u2014 (2025) 37 Centax 424 (M.P.) \u2014 Reversed [Paras 4, 7]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Dinesh Kalway vs. Union of India (2026) 42 Centax 38&hellip;<\/p>\n","protected":false},"author":19,"featured_media":9020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-9010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC Sets Aside SVLDRS-3 Demand Enhancement Without Hearing<\/title>\n<meta name=\"description\" content=\"SC rules enhancement of SVLDRS-3 demand without notice or hearing violates natural justice; matter remanded for fresh hearing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/sc-sets-aside-svldrs-3-demand-enhancement-without-hearing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SC Sets Aside SVLDRS-3 Demand Enhancement Without Hearing\" \/>\n<meta property=\"og:description\" content=\"SC rules enhancement of SVLDRS-3 demand without notice or hearing violates natural justice; 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