2023 (2) TMI 612 - HC - Service Tax

Seeking direction to second respondent to consider the petitioner's application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - petitioner's grievance in this writ petition is that even though they had paid the estimated amount as determined by the respondents as per the aforementioned scheme on 30.06.2020 which is the deadline fixed under the scheme, the respondents have not till date considered the petitioner's application as the said amount was credited into the account of the respondents only on 01.07.2020 i.e., one day beyond the deadline. HELD THAT - Having produced proof before this Court in the form of payment details dated 30.06.2020 which is timed at 18.33.54 hours (6.33 pm), the statement of the petitioner that the payment of a sum of Rs.19,18,967/- which is the estimated amount payable by the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 as per form SVLDRS-3 dated 27.02.2020 has been made to the respondents on 30.06.2020, has to be believed as no contra evidence has been produced by the respondents to disprove the said statement made by the petitioner. However, insofar as the challenge made to the impugned order in original dated 13.01.2020 is concerned, at this stage, this Court cannot interfere with the same as there are other terms and conditions which the petitioner have to fulfil for acceptance of their application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019. Once the petitioner is able to succeed in their application submitted under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019, automatically the impugned order in original will go. This writ petition is disposed of by directing the second respondent to process the application submitted by the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and consider issuance of Form SVLDRS-4 in favour of the petitioner on merits and in accordance with law within a period of four weeks from the date of receipt of a copy of this order.

Summary

Issues:
Challenge to order under Sabka Vishwas Scheme 2019 based on payment deadline compliance.

Analysis:
The petitioner challenged an order issued by the third respondent under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019, demanding a specific amount for service tax, interest, and penalties. The petitioner claimed to have paid the estimated amount on the deadline date of 30.06.2020, as per the scheme's requirements. However, the payment was credited to the respondents' account on 01.07.2020, one day after the deadline. The petitioner provided payment details from Canara Bank to support their claim of timely payment. The respondents argued that it was the petitioner's responsibility to prove the payment was made on time.

The Court considered the evidence presented by the petitioner, including payment details dated 30.06.2020 showing a transfer of the estimated amount. As there was no contradictory evidence from the respondents, the Court accepted the petitioner's claim of timely payment. However, the Court noted that the challenge to the original order could not be addressed at this stage due to other conditions the petitioner needed to fulfill under the scheme. Success in the application under the Sabka Vishwas Scheme would automatically nullify the impugned order.

Consequently, the Court directed the second respondent to process the petitioner's application under the Sabka Vishwas Scheme and issue Form SVLDRS-4 within four weeks from the date of the order. The writ petition was disposed of with no costs, and connected miscellaneous petitions were closed.