2023 (11) TMI 899 - HC - Service Tax

Direction to respondents to issue discharge certificate in Form SVLDRS-4 determining the amount paid as determined under SVLDRS Form-3 - HELD THAT - It is clear that the provisions under the Finance Bill, with regard to the fixation of time limit for availing the scheme and with regard to the extension of time for making payment of tax, is directory in nature. If it is mandatory, there will not be any delegation with regard to the Central Government to fix the time limit for availing the scheme and payment of tax. Since there is delegation with regard to the Central Government, it will only be directory in nature and that is the reason why the Central Government depends upon the situation prevailing in the country and extended the time limit from time to time. There is no doubt that if the provisions are mandatory in nature, this Court normally will not interfere and pass orders against the said substantive provisions of law. Since the provisions are directory in nature, based on the prevailing situation and the inability of the petitioner due to the said pandemic would be the factors that have to be considered by this Court to pass an appropriate order - In the present case, no doubt that the petitioner had paid the amount on 25.06.2021 during the pandemic period by virtue of the Court order. Under these circumstances, certainly, this Court can interfere and look into the grievances of the petitioner and if this Court is satisfied, this Court will consider the same and pass appropriate orders. This Court is of the view that the application, filed on 13.02.2023 consequent to the payment made by the petitioner, has to be accepted under the SVLDRS scheme by the respondent and in such view of the matter, this Court has no hesitation to direct the respondent to issue Form SVLDRS-4 to discharge the tax liabilities within a period of 30 days from the date of receipt of copy of this order - Petition allowed.

Summary

Issues Involved:

1. Compliance with the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS), 2019.
2. Extension of time for payment under SVLDRS due to COVID-19 pandemic.
3. Validity of rejection of representation by the Board.

Summary:

1. Compliance with the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS), 2019:
The petitioner, a former partner of a dissolved company, exercised the option under SVLDRS, 2019, by filing an application on 28.12.2019. The third respondent accepted the application and issued SVLDRS Form-3 on 27.02.2020, quantifying the payable amount at Rs. 3,17,090/-. The petitioner failed to make the payment by the extended due date of 30.06.2020 due to the COVID-19 pandemic and subsequent financial difficulties.

2. Extension of time for payment under SVLDRS due to COVID-19 pandemic:
The petitioner believed the due date was extended to 30.09.2020 based on a government notification dated 27.06.2020. However, the competent authority rejected the petitioner's request for an extension. The petitioner then filed W.P.No.14454 of 2020, and the Court directed the petitioner to remit the balance amount with 15% interest from 01.07.2020. The petitioner complied and made the payment on 25.06.2021. The Court allowed the writ petition, permitting the petitioner to make a representation for acceptance of his application under SVLDRS, which the Board was directed to consider.

3. Validity of rejection of representation by the Board:
Despite the Court's direction, the Board rejected the petitioner's representation on 27.08.2021. The respondents argued that the petitioner failed to make the payment within the stipulated time, thus rendering the declaration lapsed. The Court noted that the SVLDRS scheme's provisions are directory, not mandatory, allowing for extensions due to the pandemic. The Court highlighted that the respondents did not appeal the prior orders permitting the petitioner to make the payment under the scheme. Consequently, the rejection of the representation was deemed unreasonable and set aside.

Conclusion:
The Court directed the respondents to issue Form SVLDRS-4 to the petitioner within 30 days, discharging the tax liabilities under the scheme. The writ petition was allowed, and the impugned order dated 27.08.2021 was set aside.