2022 (4) TMI 935 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - seeking direction to accept the payment under the scheme - seeking issuance of discharge certificate in form SVLDRS -4 in respect of the arrears payable by the petitioner - HELD THAT - The facts are not in dispute. The petitioner was indeed entitled to avail the benefits of the aforesaid schme under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, as the petitioner was in arrears of tax. Originally as per the scheme, the amount was to be paid by 31st December, 2019. However, the date was extended and the time limit was extended up to 30.06.2020. In this case, the petitioner also paid the amount on the last date by debiting the amount electronically from his bank account. However, after the amount was debited from the petitioner's bank account, it was re-credited back due to technical glitches. The question therefore raises whether under these circumstances the benefit of the aforesaid scheme can be denied to the petitioner - The scheme is intended to allow chronic defaulters to pay the amount and buy peace. The delay in payment on account of technical glitches cannot come in the way of the petitioner to settle the dispute. There is no justification in not accepting the declaration of the petitioner under the scheme or in not accepting the payment by the petitioner belatedly. The respondents are directed to accept the payment from the petitioner, if the amount has not been paid or collected from the petitioner already, within a period of 30 days from the date of receipt of a copy of this order and bring a closure in true spirit of the Sabka Vishwas Scheme. Petition allowed.

Issues:
1. Interpretation of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
2. Compliance with payment deadlines under the scheme.
3. Effect of technical glitches on payment acceptance.
4. Judicial interpretation of scheme provisions.
5. Applicability of previous court decisions on similar cases.

Analysis:

Issue 1: Interpretation of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
The petitioner sought relief under the Sabka Vishwas Scheme to settle tax arrears. The scheme aimed to provide a one-time settlement opportunity to chronic defaulters. The petitioner had previously faced an adverse order and was required to pay a substantial sum as tax and penalty. The scheme allowed for a reduced payment amount, which the petitioner attempted to fulfill within the scheme's framework.

Issue 2: Compliance with payment deadlines under the scheme
The petitioner made efforts to pay the reduced amount within the specified deadline of the scheme. Despite facing technical issues resulting in the re-crediting of the payment, the petitioner consistently attempted to fulfill the payment obligation. The court acknowledged the petitioner's genuine efforts and the technical challenges faced in making the payment within the stipulated time.

Issue 3: Effect of technical glitches on payment acceptance
The court recognized that technical glitches led to the re-crediting of the payment made by the petitioner. It emphasized that such technical hindrances should not deprive the petitioner of the opportunity to settle the dispute under the scheme. The court highlighted the importance of considering the petitioner's efforts and the purpose of the scheme in allowing relief to defaulters.

Issue 4: Judicial interpretation of scheme provisions
The court scrutinized the scheme's provisions and the petitioner's adherence to the payment schedule. It emphasized the scheme's objective to benefit both the revenue and the defaulters. The court emphasized the need to strictly follow the scheme's procedures while considering the petitioner's attempts to comply with the payment requirements.

Issue 5: Applicability of previous court decisions on similar cases
The court considered previous judgments related to similar circumstances to assess the petitioner's entitlement to relief under the scheme. It distinguished the present case from past decisions and highlighted the unique challenges faced by the petitioner in meeting the payment deadline due to technical glitches. The court ultimately directed the respondents to accept the payment from the petitioner within a specified period to bring closure to the matter in line with the scheme's spirit.

This comprehensive analysis of the judgment highlights the key issues addressed by the court regarding the petitioner's eligibility for relief under the Sabka Vishwas Scheme and the impact of technical challenges on payment compliance.

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