The Kerala High Court has held that the benefit of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) cannot be denied citing 3 days delay in remitting amount.
The bench of Justice Gopinath P. has observed that the delay of three days in remitting the amount under the scheme cannot lead to a situation where the petitioner is denied the benefits of the SVLDR Scheme.
Background
The petitioner/assessee is a company engaged in the business of construction and sale of residential apartments. The petitioner was an assessee under the provisions of the Finance Act, 1994.
The petitioner was assessed to pay service tax and a penalty together with interest. The order adjudicating the liability on the petitioner was passed.
A Dispute Resolution Scheme known as ‘Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019’, was introduced by the Central Government for settling disputes with assessees like the petitioner.
The petitioner sought to avail the benefit of the scheme for settling the dispute leading to the issuance of order. The petitioner was accordingly issued with a statement under the scheme (Form No.SVLDRS-3) permitting the petitioner to settle the liability.
The petitioner was able to pay the amount only on 03-07-2020. According to the petitioner, the petitioner was unable to pay the amount on or before 30-06-2020 only on account of the disruptions caused by the Covid-19 pandemic.
Arguments
The department contended that the scheme is a Dispute Resolution Scheme and the terms of the Dispute Resolution Scheme have to be strictly complied with in order to enable assessees like the petitioner to obtain benefits under the scheme. It is submitted that there is no provision under the scheme for extending the time for payment, and since admittedly the petitioner has not paid the amounts within the time specified under the scheme, the petitioner is not entitled to the benefit of the scheme, and the entire amount adjudicated is liable to be paid by the petitioner.
Conclusion
The court while allowing the petition held that the petitioner was entitled to settle the disputes by opting for settlement under the scheme is not disputed. The petitioner had filed an application for settling the dispute under the provisions of the scheme and had also been issued a declaration permitting the petitioner to settle the dispute. It is true that, going by the provisions of Section 127 of the Finance (No.2) Act, 2020, the amount had to be paid on or before 30-06-2024.
Read More: Kerala High Court Directs GST Dept. To Release Confiscated Stock-In-Trade Gold
The court held that towards the end of Mach 2020, the entire country was placed under lockdown on account of the Covid-19 pandemic, and considering the disruptions caused on account of the Covid-19 pandemic, the Supreme Court had taken cognisance of the difficulties placed by various persons, and while disposing of Suo Motu Writ Peititon (C)No.3 of 2020 by order dated 08-03-2021. Since the last date for payment under the scheme fell within Covid-19 pandemic period it is covered by the directions issued by the Supreme Court.
Case Title: Jewel Homes Private Limited Versus The Joint Commissioner
Case No.: WP(C) NO. 31543 OF 2024
Date: 11/09/2024
Counsel For Petitioner: Ramesh Cherian John
Counsel For Respondent: Sri.Suvin R.Menon (Sc)
