2022 (9) TMI 1003 - HC - Central Excise

Application for settlement of disputes under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Schemes for settlement of legacy arrears, notified both under Direct and Indirect Tax statutes - seeking extension of time to remit the amount - HELD THAT - The Schemes for settlement of legacy arrears had been notified both under Direct and Indirect Tax statutes. However, there had been a variation between the final dates for receipt of payments under the two Schemes. While the Scheme in the context of Income Tax, permitted remittance till 30.09.2020, the Scheme under the Indirect Tax Laws permitted settlement only till 30.06.2020. The Court was persuaded to observe that the time limit should be on par for both Schemes. If this were so, it would enable an assessee who expresses readiness to make the payment prior to 30.09.2020, to avail the benefit of the Scheme under Indirect Taxes as well - the Court directed that delay would require the payment of interest and has directed those appellants to remit interest @ 15% from 01.07.2020 till the date of remittance, which was fixed at three weeks from the date of order, i.e., on or before 17.09.2021. Since the petitioner has admittedly approached the respondents and expressed its readiness to remit the amount on 31.07.2020, it is entitled to extension of time and is permitted to make the remittance along with interest @ 15% from 01.07.2020 to date of remittance, that must be within a period of four weeks from the date of receipt of this order, for which purpose, the website shall be enabled forthwith - Petition disposed off.

Summary

Issues:
Assessees under the Central Excise Act seeking extension of time for remittance under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Analysis:
1. W.P.No.2942 of 2021:
- The petitioner filed an application for settlement under the SVLDRS in December 2019 but faced difficulty meeting the payment deadline by June 30, 2020.
- The petitioner later expressed readiness to remit the amount a month later on July 30, 2020, seeking clarity on acceptance.
- The petitioner requested permission to pay the determined amount, which was received by the respondents on July 31, 2020.
- The court allowed an extension for remittance with 15% interest from July 1, 2020, to be paid within four weeks from the order date.

2. W.P.No.19919 of 2020:
- The petitioner delayed remittance till October 17, 2020, seeking an extension, which was beyond the original deadline.
- Despite proof of communication, the delay was not justified, following a precedent related to time extensions.
- The court rejected the petitioner's claim for an extension due to the significant delay in taking necessary steps.

3. Common Observations:
- Discrepancies were noted between the final dates for payment under Direct and Indirect Tax statutes' settlement schemes.
- The court emphasized the need for uniformity in time limits for both schemes to benefit taxpayers.
- A liberal interpretation of the law was applied to extend the time limit for compliance with tax payments.
- Interest at 15% was imposed on delayed payments, emphasizing the importance of timely compliance with tax obligations.

4. Final Decisions:
- W.P.No.2942 of 2021 was disposed of with an extension for remittance and interest payment within four weeks.
- W.P.No.19919 of 2020 was dismissed due to the petitioner's significant delay in taking necessary actions.
- W.P.No.17428 of 2022 was dismissed as withdrawn, with no costs imposed on any party in the writ petitions.