Inability to pay SVLDR Scheme Settlement Amount due to Financial Hardship: Madras HC directs to treat matter under SVLDRS and issue Discharge Certificate [Read Order]
Madras High Court condones inability to pay Settlement Amount within due date owing to Financial Hardship, subject to certain conditions. Read on to Know More
Madras High Court – SVLDR Scheme – Financial Hardship – Discharge Certificate – TAXSCAN
Madras High Court – SVLDR Scheme – Financial Hardship – Discharge Certificate – TAXSCAN
A Single Bench of the Madras High Court has directed the department to treat a matter under Sabka Vishwas Legacy Dispute Resolution Scheme ( SVLDRS ) and issue discharge certificate as the petitioner was unable to pay the SVLDRS Scheme amount due to financial crunch.
The petitioner sought relief against an order dated January 31, 2022, by the Designated Committee of the Sabka Vishwas Legacy Disputes Resolution Scheme ( SVLDRS ). The petitioner aimed to quash the order and direct the 1st respondent to issue a discharge certificate in Form SVLDRS 4, considering the payment made on June 9, 2021.
The petitioner had availed the SVLDRS for the assessment years 2014-2018 and filed Form SVLDRS-1 on December 31, 2019. After scrutiny, the Designated Committee issued Form SVLDRS-3 confirming the petitioner's declared liability.
However, due to financial hardship, the payment was delayed and made on June 9, 2021, beyond the extended deadline of June 30, 2020. Consequently, the petitioner's case was deemed outside the SVLDRS scope, leading to the impugned order.
The petitioner's counsel, G. Natarajan, argued that financial constraints caused the delay in payment, citing a precedent where a Division Bench granted a similar benefit to another appellant in a comparable case.
On the other hand, Rajnish Pathiyil, senior standing counsel for the respondents, asserted that the facts of the present case differ from the cited precedent.
Justice Senthilkumar Ramamoorthy, after considering the arguments, referred to the Division Bench judgment and concluded that the petitioner is entitled to similar treatment.
The order dated February 27, 2024, quashes the impugned order and remands the matter to the 1st respondent for reconsideration. The petitioner is directed to pay interest at 15% per annum on the amount paid under SVLDRS for the period from July 1, 2020, to June 9, 2021. Once this condition is met, the 1st respondent is instructed to treat the case under SVLDRS and issue a discharge certificate.
This decision lays down a crucial precedent for cases where financial constraints contributed to payment delays under the Sabka Vishwas Legacy Disputes Resolution Scheme.
To Read the full text of the Order CLICK HERE
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