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TMI Blog2025 (1) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... after the advice of its Chartered Accountant, tried making payment through NEFT/RTGS out of abundance caution and to demonstrate the bona fide of the petitioner to make the payment as determined under the Scheme by respondent No. 2 Designated Committee. In view of the bona fide attempt made by the petitioner to make the payment cannot be doubted and therefore, the substantive benefit of the Scheme cannot be denied to the petitioner on the ground of procedural technicalities more particularly, in time of Covid-19 Pandemic. In the given facts and circumstances, the petitioner made bona fide attempt to make the payment as determined under the Scheme and is also prepared to pay the amount in question in accordance with the Scheme along with interest for the period for which the petitioner was not permitted to make payment by respondent authorities considering extreme Pandemic condition of Covid-19, it is opined that this is a fit case for invocation of the powers under Article 226 of the Constitution of India. This Court in similar circumstances in case of M/S LG CHAUDHARY VERSUS UNION OF INDIA [ 2022 (10) TMI 631 - GUJARAT HIGH COURT] allowed the petition by directing the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act ) separately for each notice under Form SVLDRS-1 on departmental portal. 9. The declaration was considered by the Designated Committee as provided under section 126 of the Act and a statement as provided under section 127 of the Act was issued online in Form SVLDRS-3 in each case. 10. Due to Covid lockdown, the last date for payment of amount under the Dispute Resolution Scheme was extended upto 30.06.2020 by instruction dated 29.05.2020. 11. It is the case of the petitioner that as per the procedure prescribed under the Scheme, upon issuance of statement in SVLDRS-3, challan for payment of amount is to be generated online on the departmental portal, however, in case of the petitioner the challans for payment could not be generated on the protal due to technical reason. As the last date was nearing, the petitioner had approached the jurisdictional departmental authority various times to help in generating the challans for payment. The Range authority had also instructed the petitioner to make payment by email dated 19th June, 2020. 12. Upon receipt of the email, the petitioner through its reply dated 19th June, 2020 replied that the portal is still not accepting online paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid decision, the petitioner has approached this Court. 21. Learned Senior Advocate Mr. Deven Parikh for the petitioner submitted that the petitioner had tried to make payment in the RBI account which was also debited from their account, however due to technical reasons, not known to the petitioner, the same was re-credited. Hence the petitioner bona fidely made all efforts to make good the payment and settle the dispute, however the same could not be done due to technical reasons. It was therefore, submitted that the intended benefit under the SVLDRS is required to be granted to the petitioner. 22. It was further submitted that the Scheme is introduced to allow the defaulter to pay the amount and to settle the disputes arisen under the erstwhile Central Excise and Service Tax regime. The petitioner had correctly filed the declaration form which was accepted by the Designated Committee and statement for payment as provided under section 127 (1) of the SVLDRS was issued and there was no difference in the declared liability and accepted liability. 23. It was further submitted that upon issuance of Form SVLDRS-3, the petitioner was required to generate challan on the portal, ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rules, the service provider was required to assess correct value of services provided and to pay applicable service tax on that value. It was submitted that even though the petitioner had knowledge of correct taxable value, they had not discharged their service tax liability in their ST-3 returns and they had deliberately suppressed the correct taxable value and thus not paid the correct service tax leviable on the taxable value of service provided/received with a view to evade payment of service tax. 29. It was submitted that several show cause notices were issued to the petitioner for demand of applicable service tax along with interest which were later adjudicated and total demand of service tax liability confirmed against the petitioner was Rs. 47.85 lakh along with applicable interest and penalty. Thereafter several letters were addressed to the petitioner by the Range Officers of the department, however, the petitioner informed that they had preferred an appeal against the said orders before Commissioner (Appeals) which appeal was dismissed as the petitioner failed to pay the pre-deposit amount of 25% of the service tax confirmed. 30. It was further submitted that a designa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SVLDRS-3 and the petitioner tried to make the payment through RTGS on 29.06.2020, however, the same was not accepted by the receiving bank and the payment was returned to the petitioner which is apparent from the bank statement produced on record. 35. It also appears from the record that the petitioner could not generate the challan successfully for making the payment and after the advice of its Chartered Accountant, tried making payment through NEFT/RTGS out of abundance caution and to demonstrate the bona fide of the petitioner to make the payment as determined under the Scheme by respondent No. 2 Designated Committee. In view of the bona fide attempt made by the petitioner to make the payment cannot be doubted and therefore, the substantive benefit of the Scheme cannot be denied to the petitioner on the ground of procedural technicalities more particularly, in time of Covid-19 Pandemic. 36. The basic object of the Scheme is to reduce litigation by allowing the eligible assessee to make the payment of the outstanding dues after availing the relief under the Scheme. As per the provisions of the Scheme, respondent No. 2 has issued a statement as provided under section 127 of Chapte ..... 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