2021 (7) TMI 257 - HC - Service Tax

Seeking Revenue to accept payment pursuant to issuance of Form 3 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - whether original time of 30 days from issuance of Form 3 has been overridden by the Department - N/N. 13 of 2016 dated 01.03.2016 - HELD THAT - Though the decision of the Board was sought for specifically, an affidavit has been filed by the Commissioner/R5 stating that since the petitioner has not made the remittance within the due date of 30.06.2020, the application ought to be treated as lapsed. There are no reason to keep this writ petition pending any more. The petitioner is permitted to make a representation within a period of one week from today, accompanied by a copy of this order to the Board and the Board is directed to consider the same and pass appropriate orders within a period of four (4) weeks from receipt thereafter. Petition disposed off.

Issues:
1. Application for mandamus to accept payment under Sabka Vishwas Scheme
2. Extension of payment deadline due to COVID-19 lockdown
3. Compliance with Scheme requirements and delay in remittance
4. Comparison with similar judgments and directions for payment
5. Board's response and instruction for late remittances
6. Supreme Court's decision on GST Amnesty Scheme and late fees

Issue 1 - Application for Mandamus under Sabka Vishwas Scheme:
The petitioner sought a mandamus to direct the Union of India to accept payment under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner had received a demand order and subsequently opted for the Scheme, leading to the issuance of Form 3 quantifying the demand. The petitioner expressed readiness to pay but faced challenges due to the portal's limitations post the original deadline.

Issue 2 - Extension of Payment Deadline due to COVID-19 Lockdown:
The Court acknowledged the impact of the COVID-19 pandemic and noted the Scheme's unilateral extension of the payment deadline till 30.06.2020. Despite the petitioner's willingness to pay and the portal restrictions, a delay of 9 days occurred in remitting the amount after the extended deadline.

Issue 3 - Compliance with Scheme Requirements and Delay in Remittance:
The Court emphasized the petitioner's substantial compliance with Scheme requirements and highlighted the delay in remitting the quantified amount as a common issue faced by many taxpayers. The Court urged the Board to find a viable solution to address such delays.

Issue 4 - Comparison with Similar Judgments and Directions for Payment:
Reference was made to a Gujarat High Court judgment directing a taxpayer to deposit the amount within a fixed timeframe. The Court highlighted the need for the Board to address such situations and noted the absence of a solution despite past directives.

Issue 5 - Board's Response and Instruction for Late Remittances:
The Board issued an instruction recognizing challenges faced by declarants in remitting amounts before the deadline and indicated a willingness to accept payments post 30.06.2020, subject to conditions and possible interest levies. The Court urged the Board to consider solutions and conduct a survey of recoverable amounts.

Issue 6 - Supreme Court's Decision on GST Amnesty Scheme and Late Fees:
A Supreme Court case concerning GST Amnesty Scheme and late fees was referenced, where the Court declined to entertain requests for policy changes. The Court emphasized the need for the Board to address issues faced by taxpayers and find solutions.

In conclusion, the Court permitted the petitioner to remit the amount quantified under the Scheme with interest and directed the Board to consider representations and pass appropriate orders within a specified timeframe. The writ petition was disposed of, emphasizing the need for the Board to address delays in remittances and find solutions for taxpayers facing similar challenges.

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