2021 (7) TMI 1297 - HC - VAT and Sales Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - payment could not be paid in stipulated time - HELD THAT - Shri Nagpure was quick to respond that the pandemic was unknown when the decision in Charak Pharmaceuticals (supra) was rendered by the Supreme Court. However, in our view, nothing substantial turns on such response. It is indeed true that the scheme provided a one-time window for a party like the petitioner to avail the benefits envisaged therein. The statement of the Designated Committee is dated 31/1/2020. As per the terms of the scheme, the determined amount of ₹ 45,09,357/- was required to be paid by thirty days from 31/1/2020. The national lock-down because of COVID-19 was announced sometime on 23/3/2020. The reason put forward by Shri Nagpure that the petitioner was disabled to pay the requisite amount because of the pandemic is, therefore, unsustainable. Even otherwise, considering the pandemic, there were further extensions one till 31/3/2020 and then again till 30/6/2020. Such extensions must be treated to be actions taken to facilitate payment by the declarant, who had sought to avail of the benefits under the scheme. There being no extension beyond 30/6/2020, the writ court has no competence to add to or alter the terms of the scheme to enable the party, which had sought to avail the benefits of the scheme, to deposit the determined amount beyond the period as fixed by the respondent. The writ jurisdiction cannot be invoked by a party for facilitating avoidance of obligations voluntarily incurred. The determined amount not having been paid by 30/6/2020, the statement has lapsed and cannot be given a fresh lease of life - Petition dismissed.

Summary

Issues:
1) Interpretation of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
2) Extension of time for payment under the scheme.
3) Invocation of writ jurisdiction for payment facilitation.
4) Impact of COVID-19 pandemic on payment obligations.

Analysis:
1) The judgment pertains to the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, aimed at settling tax disputes through a one-time window. The petitioner sought settlement under the scheme, with the Designated Committee determining the payable amount. However, failure to pay within the stipulated time led to the lapse of the settlement statement.

2) The petitioner, after a lapse of four months, approached the Court seeking permission to deposit the determined amount. The Court considered arguments from both sides, where the petitioner cited reasons for payment delay, including the COVID-19 pandemic impact. The respondent highlighted the necessity of full compliance with scheme provisions for availing benefits.

3) The Court deliberated on the petitioner's plea to invoke writ jurisdiction to facilitate payment beyond the specified timeline. The petitioner's contention of pandemic-induced payment challenges was weighed against the scheme's requirement of timely compliance. The Court emphasized that extensions granted were to aid payment within the scheme's framework.

4) Addressing the impact of the COVID-19 pandemic on payment obligations, the Court noted the initial announcement of a national lockdown on 23/3/2020. Despite subsequent extensions, the petitioner failed to meet the extended deadline of 30/6/2020. The Court concluded that the writ jurisdiction cannot be used to evade voluntarily incurred obligations, leading to the dismissal of the petition.

In conclusion, the judgment underscores the importance of adhering to scheme provisions for availing benefits and highlights the limitations of writ jurisdiction in altering payment timelines. The Court's decision was based on the principle of upholding obligations voluntarily undertaken, even in the face of unforeseen circumstances like the COVID-19 pandemic.