2022 (9) TMI 945 - HC - Service Tax

Non-issuance of Discharge certificate in Form SVLDRS-4, despite required payments made - HELD THAT - The material on record clearly establishes that the petitioner had already paid a sum of Rs.1,49,27,961/- to the respondents, who had accepted the entitlement of the petitioner under SVLDR Scheme - the respondents have accepted and acquiesced to the fact that the petitioner was entitled to the benefit of the SVLDR Scheme and the petitioner having paid the aforesaid sum of Rs.1,49,27,961/- on 31.12.2019 within a period of 30 days from 02.12.2019 on which date Form SVLDRS-3 was issued, respondent No.2 clearly fell in error in issuing show-cause notice without considering or appreciating that the payment referred to without considering or appreciating or taking into account the said undisputed payment made by the petitioner. The impugned show-cause notice is clearly contrary to the undisputed to the facts and circumstances and consequently, upon petitioner making payment of the aforesaid amount on 31.12.2019 within the stipulated period of 30 days within 03.12.2019, the petitioner is clearly entitled to the benefit of the SVLDR Scheme and consequently, petitioner is entitled for issuance of Form SVLDRS-4 in his favour. The impugned notice deserves to be quashed and necessary directions are to be issued to the respondents in this regard - Petition allowed.

Summary

Issues:
Petition seeking writ of mandamus for issuance of Form SVLDRS-4, writ of certiorari to quash show cause notice, and other orders in the context of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Analysis:
The petitioners sought relief through a writ of mandamus to direct Respondent No.1 to issue Form SVLDRS-4 following the issuance of Form SVLDRS-3 under the SVLDR Scheme. The court noted that the petitioner had submitted Form SVLDRS-1 and subsequently paid the demanded sum under the scheme. Despite this, Respondent No.2 issued a show-cause notice alleging non-payment and withholding the issuance of Form SVLDRS-4. The court observed that the petitioner had indeed paid the required amount within the stipulated period, as evidenced by payment challans and communications. The court found that the respondents had acknowledged the petitioner's entitlement under the SVLDR Scheme and accepted the payment made. Therefore, the issuance of the show-cause notice was deemed erroneous and contrary to the facts presented by the petitioner.

The court emphasized that the petitioner was entitled to the benefits of the SVLDR Scheme, having fulfilled the payment obligations within the specified timeframe. Consequently, the court ruled in favor of the petitioner, allowing the petition and quashing the impugned show-cause notice dated 31.12.2021 issued by Respondent No.2. Additionally, Respondent No.1 was directed to consider the petitioner's claim for the scheme's benefits in line with the court's observations and issue Form SVLDRS-4 promptly, subject to necessary verifications. To expedite the process, the petitioner was instructed to submit a fresh representation with relevant documents to Respondent No.1 within a week for further consideration.

In conclusion, the court granted the requested reliefs, highlighting the petitioner's compliance with the SVLDR Scheme's payment requirements and the erroneous nature of the show-cause notice issued by Respondent No.2. The judgment emphasized the importance of honoring the petitioner's entitlement under the scheme and directed the respondents to act accordingly, ensuring the prompt issuance of Form SVLDRS-4 to the petitioner.