2024 (5) TMI 66 - AT - Central Excise

Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - the declaration under the scheme cannot be processed as the conditions specified in Boards Instructions to manually process the declaration has not been fulfilled - HELD THAT - SVLDRS was a dispute resolution-cum-amnesty scheme launched with the objective of reducing litigation relating to legacy taxes so as to benefit compliant taxpayers settle their old cases. It was hence a beneficial scheme. The principle consistently held by Constitutional Courts in implementing such schemes is that when substantial justice is pitted against technical considerations it would be always necessary to prefer the ends of justice. It is pain to observe that the scheme which was meant for reducing litigation appears to be driving the hapless applicants to continue to litigate even for implementing the scheme for no fault on their part. Understandably the scheme would apply only when a litigation is pending in appeal. To settle that dispute the tax payers would opt for the benefit of such a scheme so that they pay the tax as prescribed within the time frame provided and put an end to the litigation and buy peace of mind. But the attitude of the Department as could be seen from the present case rather pushes the tax payer pending one litigation to approach High Court and obtain a direction which is certainly not the design of any statute not to speak of the SVLDRS. The appellant is made to reach out to higher judicial forum incurring further expenses because of faults which are not attributable to him. The computer system not generating the required form-4 should not prove to be an expensive affair for the tax payer who opts for settlement pays tax as demanded in time and thus discharges his burden but is denied substantive justice on technical ground and is forced into further litigation. The respondent Department directed to manually process the request of the petitioner for issue of Discharge Certificate within four weeks from the date of receipt of a copy of this order - appeal disposed off.

Summary

Issues involved:
The issue in this case involves the processing of a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) and the delay in issuing the discharge certificate u/s SVLDRS-4.

Details of the Judgment:

Issue 1: Processing of SVLDRS Declaration
The appellant had filed a declaration under SVLDRS and paid the specified amount before the scheme closed. The Department's inability to process the declaration due to unfulfilled conditions specified in Board's Instructions was highlighted. The Board's Instructions emphasized the manual processing of valid claims even after the scheme's closure. The Tribunal noted that the Department's stand was unjustified, and the delay in issuing the discharge certificate was unreasonable, as per legal precedent.

Issue 2: Legal Precedents and Ancillary Powers
Legal precedents were cited to emphasize the Tribunal's authority to ensure justice and give directions to process declarations effectively. It was highlighted that procedural laws should serve justice, and technical considerations should not hinder substantive rights. The SVLDRS was recognized as a beneficial scheme aimed at reducing litigation and benefiting compliant taxpayers.

Issue 3: Directive to Department
Considering the circumstances and legal principles, the Tribunal directed the Department to manually process the appellant's request for a 'Discharge Certificate' within four weeks from the date of the order. The decision aimed to prevent unnecessary litigation and ensure substantive justice for the taxpayer involved.

This judgment addresses the delay in processing a declaration under the SVLDRS and emphasizes the need for manual processing of valid claims even after the scheme's closure. It underscores the Tribunal's authority to ensure justice and give necessary directions. The directive to the Department to process the discharge certificate within a specified timeline aims to prevent further litigation and uphold substantive rights in line with the objectives of the SVLDRS.