2024 (4) TMI 561 - HC - Service Tax

SVLDRS - Benefit of the Amnesty Scheme opted - non-payment of service tax in respect of services rendered under the head of commercial training and coaching services - failure to make payment on account of technical glitch or not - HELD THAT - Taking note of the report issued by the Assistant Director attached to the office of the Principal Additional Director General of Systems and Data Management GST and Central Excise, GST Bhavan, Chennai, the contention of the appellant regarding technical glitches of the system cannot be accepted - this is a case where the appellant who had applied for the benefit of the Amnesty Scheme was well aware of the strict time schedule that had to be adhered to for making payments under the Scheme. It clearly comes out through the affidavit of the appellant himself that he came to know of the SVLDRS-3 intimation only on 15.06.2020, which was well after the last date of 31.03.2020 for making payments as originally envisaged under the Scheme. While the appellant apparently accessed the web portal of the SVLDRS on 29.06.2020, he does not appear to have attempted to make the payment envisaged since such details have not been captured by the system. The terms of the Amnesty Scheme being of the nature of an exemption from the requirement to pay the actual tax due to the government, have to be considered strictly in favour of the revenue and against the assessee, and hence the appellant cannot be permitted to avail the benefit of the Scheme on the facts of the instant case - Appeal dismissed.

Summary

Issues involved:
The judgment involves the issue of availing the benefit of the "SABKA VISHWAS" [Legacy Dispute Resolution] Scheme and the failure to make timely payments under the Scheme.

Summary of the Judgment:

Issue 1: Availing Benefit of Amnesty Scheme
The appellant, running a coaching center, was issued a show cause notice for non-payment of service tax. The appellant opted for the Amnesty Scheme and uploaded the required declaration form. However, the appellant failed to make the payment within the prescribed time frame despite claiming technical glitches as the reason. The court found that the appellant was aware of the time schedule for payment under the Scheme but failed to make the payment on time. The appellant's conduct did not warrant the grant of relief sought in the Writ Petition.

Issue 2: Failure to Make Timely Payments
The appellant contended that technical glitches prevented him from making the payment on the last date specified under the Scheme. However, a report revealed that there were no attempts to make the payment on the relevant dates. The court noted that the appellant was well aware of the strict time schedule for payments under the Scheme. Despite accessing the web portal, the appellant did not make the required payment. The court held that the appellant cannot avail the benefit of the Scheme due to the failure to adhere to the payment schedule. The Writ Appeal was dismissed without prejudice to the appellant's right to appeal before the statutory appellate authority.

In conclusion, the court dismissed the Writ Appeal, emphasizing the strict adherence to the payment schedule under the Amnesty Scheme and ruling against the appellant's request for leniency based on technical glitches and delayed payment attempts.