2023 (2) TMI 12 - HC - Service Tax

Seeking direction to the Respondents to allow the Petitioner to pay the amount under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and to issue discharge certificate - HELD THAT - On the aspect of delay in filing the writ petition, the learned Counsel for the Petitioner submitted that the Petitioner attempted various occasions to pay the amount and it took some time to collect that documents from the Bank. Also on this aspect, since the Petitioner has relied upon the decision in the case of M/S LG CHAUDHARY VERSUS UNION OF INDIA 2022 (10) TMI 631 - GUJARAT HIGH COURT on the ground that the facts are identical, it has to be noted that in the case of L.G. Chaudhary, the interest amount as stipulated at the rate of Rs. 9% per annum was directed to be paid Considering the facts and circumstances of the present case, it is opined that the interest at the rate of Rs. 6% per annum would be appropriate. The Respondents are directed to permit the Petitioner to pay the amount of Rs. 7,69,317/- under the Scheme of 2019 along with interest at the rate of Rs.6% per annum from 30 June 2020 till the date of payment - petition allowed.

Summary

Issues:
Petitioner seeking direction to pay under Sabka Vishwas Scheme, 2019 and issue discharge certificate.

Analysis:
The Petitioner, a private limited company, filed a declaration under the Sabka Vishwas Scheme, 2019, declaring tax dues. The Respondents issued Form SVLDRS-3 directing payment of Rs. 7,69,317/-. Due to the Covid-19 lockdown, the Petitioner's payment was returned by the bank. Despite multiple attempts, a new challan could not be generated. Respondents later called for a response, to which the Petitioner expressed willingness to pay but faced challenges due to the old challan issue.

The Court considered the Petitioner's eligibility for the Scheme, which was not in dispute. Documents confirmed the payment attempt on 24 June 2020. Referring to a similar case, the Court emphasized the Petitioner's bona fide attempt to pay within the extended period. The Court directed the Respondents to accept the payment with interest, following the precedent set by the Gujarat High Court.

Regarding the delay in filing the petition, the Court noted the Petitioner's efforts to pay and collect necessary documents. Citing the Gujarat High Court's decision, the Court ordered interest at 6% per annum. The judgment allowed the Petitioner to pay the amount under the Scheme with interest, directing the Respondents to issue necessary certificates promptly.

In conclusion, the Court granted relief to the Petitioner, emphasizing the need to extend indulgence as in the Gujarat High Court case. The judgment highlighted the importance of considering the circumstances and ensuring fair treatment in similar cases.