2021 (1) TMI 806 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - allegation that no return had been filed by the Petitioner for the period from 1st April, 2016 to 30th September, 2016 - Petitioner contends that the decision of the Respondent to reject the Petitioner s application is completely baseless, inasmuch as the Petitioner had indeed filed its return for the relevant period on 12th July, 2017 - HELD THAT - There is no surviving factual controversy, as indeed the returns filed by the Petitioner are available with the Respondents. Certainly, the technical infraction at the end of the Respondent cannot be a ground to deprive the Petitioner the benefit of the Scheme. Thus, clearly, the ground on the basis of which the Petitioner s application has been rejected does not survive, and is liable to be set-aside. There is no impediment for the Court in allowing the Petitioner s request and we accordingly do so and set aside the impugned Statement dated 28th February, 2020 passed by the Respondent No. 2. Further direction is issued to the Respondent No. 4 to accept the Petitioner s Form SVLDRS-I and process the same under Section 126 of the Finance Act, 2019 - Petition allowed.

Summary

Issues:
Challenge to rejection of application under SVLDR Scheme based on non-filing of returns for a specific period.

Analysis:
The petitioner, a company providing housekeeping services, challenged the rejection of its application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) due to alleged non-filing of returns for a specific period. The petitioner contended that it had indeed filed the returns for the relevant period on 12th July, 2017, which was overlooked by the respondents. The rejection resulted in the petitioner being deprived of relief under the SVLDR Scheme. The petitioner argued that it met the eligibility criteria for relief as per circulars issued by the respondents.

The petitioner relied on Circular No. 1072/05/2019-CX dated 25th September, 2019, which defined tax dues as the outstanding duty amount against the declarant after deducting dues already paid. The circular clarified the relief application process based on outstanding amounts. Additionally, Circular No. 1073/06/2019.CX dated 29th October, 2019 addressed cases where parties had filed returns and paid dues in full before applying for benefits under the scheme for interest on late paid dues.

During the hearing, it was revealed that the returns filed by the petitioner were not initially visible on the GST portal due to a technical glitch. However, the returns were available in the records of the GST department. The respondents acknowledged this discrepancy and confirmed the availability of the filed returns. The court found no factual controversy remaining, considering the returns were on record. The technical issue on the part of the respondent could not be a basis to deny the petitioner the scheme's benefits.

Consequently, the court set aside the impugned statement rejecting the petitioner's application and directed the respondent to accept the petitioner's Form SVLDRS-I for processing under Section 126 of the Finance Act, 2019. The court instructed the respondent to consider the circulars dated 25th September, 2019, and 29th October, 2019 during the processing of the application. If found eligible, the necessary discharge certificate would be issued to provide all benefits under the SVLDR Scheme. The petition was allowed in favor of the petitioner.