Gujarat High Court (HC) bench consisting of Justices Sonia Gandhi and Sandep N. Bhatt directed the authorities to issue the Discharge Certificate under form 4 of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
The petitioner M/s SK Likproof Private Limited, engaged in the business of manpower recruitment agency, maintenance of repair service etc. challenged the action of the respondent authorities for not issuing the discharge certificate.
According to Section 73 of the Finance Act of 1994, the authorities ordered the petitioner to pay the service tax in the amount of Rs 3,60,502/-, as well as any relevant interest and penalties. The petitioner appealed to the appellate authority, and the last hearing was scheduled for September 7, 2019.
The Finance Act of 2019 notified the Sabka Vishwas Scheme Rules, 2019, SVLDRS as a one-time solution to resolve historical disputes involving the Central Excise, Service Tax, and other 26 indirect tax enactments.
The petitioner submitted a form SVLDRS-1 application. The petitioner was given notice pursuant to Section 127, asking it to provide documentation regarding whether the final hearing of the appeal was held prior to 30.6.2019.
The petitioner was intimated that the personal hearing was scheduled on 14.2.2020 and on 12.2.2020, the petitioner was asked to pay the amount of Rs 81,050.60/- for full and final settlement of tax dues under the Act. The Mandate form has also been generated through the portal for the settlement of pending amounts of Rs 81,050.60/-.
On 14.3.2022, the notice came to be issued by the respondent authority under Section 79(1) (c) of the Central Goods and Service Tax Act, 2017 in Form GST DRC 13 wherein it was directed to pay liabilities in compliance with Section 79(1) (c) of the CGST/ GGST. Declaration in SVLDRS had been filed against order in appeal with respect to which the respondent authority had issued the notice in Form GST DRC-13. According to the petitioner, it made the payment of Rs 7,68,675/- through Real Time Gross Settlement (RTGS).
The court’s observation was that the petitioner had chosen the SVLDRS programme and was compelled by the department to pay Rs 81,051.60 within a certain time frame.
Also, the petitioner paid Rs 81,051 by NEFT within six days of the SVLDRS-3 date; but, due to technical difficulties, the cash could not be debited and instead got re-credited to his account.
The bench noted that although the petitioner had made the payment twice as required by law, it appeared twice in his account as a result of technical difficulties. And when it was attempted a third time, the allotted time had passed. underlined the fact that the petitioner genuinely tried to pay the sum.
The bench was instructed to take into account the petitioner’s payment of Rs. 81,051 and appropriate it towards the settlement obligations under the SVLDRS 2019 and the discharge certificate to be issued in favour of the petitioner. Additionally, the bench was instructed to refund Rs. 7,68,675/- with interest within an 8-week window for consequential benefits.
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