2023 (6) TMI 502 - HC - Service Tax

Sabkha Vishwas (Legacy Dispute Resolution) Scheme, 2019 - extension of time limit for making balance payment under SVLDRS 2019 and accepting the payment already made in respect of tax dues quantified - violation of provisions of Section 127(5) of the Finance Act, 2019 - HELD THAT - When the matter had come up on 24.04.2023, this Court had directed the petitioner to pay the balance amount of Rs. 14,78,471/-. In compliance of the same, they have remitted the said amount by Challan dated 25.05.2023. By this payment, the principal amount payable under the scheme has been paid by the petitioner. The very nomenclature of the scheme would imply that the scheme has been introduced for the development of all. The petitioner has set out the reasons as to why he was unable to adhere to the schedule under the scheme. Therefore, taking into account the facts of this case and considering the fact that the amount due under the scheme has been paid, the interest of justice would be sub-served directing the petitioner to pay the interest at the rate of 15% from 01.10.2020 till the dates of respective payments. It is needless to state that the amounts paid prorata would be deducted for calculating the interest. The payment of the interest would also ensure that the revenue is not prejudiced. On such payment, the discharge certificate should be issued. The said exercise shall be completed within a period of 3 weeks from the date of receipt of a copy of this order. This order has been passed only taking into account the special facts of this case. The Writ Petition is disposed of.

Summary

Issues:
The issues involved in this case are related to the acceptance of an application under the Sabkha Vishwas (Legacy Dispute Resolution) Scheme, 2019, the time limit for making balance payment under the scheme, and the compliance with the scheme's repayment terms.

Acceptance of Application under the Scheme:
The petitioner, engaged in storage and warehousing services, was directed to pay a significant amount towards tax dues under the GST regime. Due to various reasons including the COVID-19 lockdown and business losses, the petitioner could not avail the appellate remedy. Subsequently, the petitioner opted for the Sabkha Vishwas Scheme, 2019, which provided relief on interest, penalty, and fine. The petitioner filed the necessary forms under the scheme for reduction in the taxable amount. However, due to delays in processing and payment schedules, the petitioner faced challenges in adhering to the scheme's timelines.

Time Limit Extension and Compliance with Repayment Terms:
The petitioner, despite making partial payments towards the tax dues under the scheme, faced issues with the time limit for full payment. The petitioner requested an extension and sent representations to the respondents for accepting the balance amount due. The respondents contended that the petitioner had not complied with the repayment terms of the scheme, citing violations of the Finance Act, 2019. The Court directed the petitioner to pay the balance amount, which was subsequently remitted. Considering the special circumstances of the case, the Court ordered the petitioner to pay interest at a specified rate from a certain date until the respective payments were made. The payment of interest was deemed necessary to ensure that the revenue was not prejudiced, and a discharge certificate was to be issued upon completion of the payment within a specified timeframe.

Conclusion:
The writ petition was disposed of with the petitioner being directed to pay the interest as ordered. No costs were awarded, and the connected Miscellaneous Petition was closed. The judgment highlighted the importance of adhering to the repayment terms of the scheme while considering the unique circumstances of the case.