2021 (11) TMI 554 - HC - Service Tax

SVLDRS - Non-payment of service tax - Sabka Viswas (Legacy Dispute Resolution Scheme, 2019) - payment not made duly - case of the petitioner is that on account of his personal ill health in the last few days of June 2020, he was totally indisposed and therefore could not make any payment - HELD THAT - As per the admitted facts, the payment had to be made latest by 30.06.2020. The petitioner has not raised any dispute about the computation of the sum payable calculated by the department and conveyed to him. There is no provision in the scheme for extending the time limit for making the payment. In fact, the scheme clearly envisages that upon termination of the said period, the scheme would come to an end. That being the position, on the grounds stated by the petitioner, an order for extension of the scheme cannot be granted. Petition dismissed.

Summary

Issues:
Challenge to recovery notice under Sabka Viswas Scheme for unpaid service tax.

Analysis:
The petitioner, engaged in construction services, was found liable for unpaid service tax for the financial years 2008-09 to 2011-12. The Service Tax Department demanded ?28,11,443 with interest. The petitioner's appeal against the order was dismissed in 2018. Subsequently, the Government introduced the Sabka Viswas Scheme in 2019 for resolving legacy disputes. The scheme required a partial tax deposit by a specified date for the remaining tax to be waived. The petitioner was asked to deposit ?10,40,177 by 30.06.2020 to avail the scheme's benefits. Despite extensions, the petitioner failed to make the payment due to personal health reasons and technical issues in making the payment through the Department's portal.

The Court noted that the payment deadline was clearly set as 30.06.2020, with no provision for further extensions under the scheme. The petitioner did not dispute the calculated amount or the communication from the Department. As the scheme automatically ended upon the deadline's expiration, the Court found no grounds for granting an extension based on the petitioner's reasons. Consequently, the Court dismissed the writ petition challenging the recovery notice under the Sabka Viswas Scheme.

In conclusion, the judgment upheld the strict adherence to the scheme's terms regarding payment deadlines and extensions. The Court emphasized the importance of complying with the scheme's requirements and found no basis for extending the deadline beyond what was specified, ultimately leading to the dismissal of the petitioner's challenge to the recovery notice.