No Invocation of Writ Jurisdiction to extend limitation for making payment on failure to Comply provisions of Subka Vishwas (LDR) Scheme: Kerala HC [Read Order]

A Single Bench of the Kerala High Court observed that there can be no invocation of writ jurisdiction to extend limitation for making payment on failure to comply provisions of Subka Vishwas (Legacy Dispute Resolution) Scheme.

The petitioner is running a ‘coaching centre’. Various courses are conducted for the students to appear in competitive examinations, like medical and engineering entrance etc. The petitioner did not remit the service tax for the relevant years, though the petitioner services come within the meaning of ‘commercial training and coaching service’.

The show cause notice was issued to the petitioner, directing the petitioner to show cause why service tax, Cess etc., as indicated in the show cause notice should not be levied and demanded from the petitioner.

The petitioner decided to avail the benefit under “SUBKA VISHWAS” [Legacy Dispute Resolution] Scheme Rules, 2019, therefore, the petitioner uploaded SVLDRS-1 on 14.01.2020. The petitioner had computed the amount payable under the Scheme as Rs. 13,895/-.

After the GST regime was put in place, to reduce the tax litigation in respect of indirect taxes, Government came out with notification No.5 of 2019, dated 21.08.2019 and framed rules governing the Scheme as “SUBKA VISHWAS” [Legacy Dispute Resolution] Scheme Rules, 2019.

The counsel for the petitioner submitted that the petitioner did not hear anything from the respondents after they filed SVLDRS-1 on 14.01.2020 and they could notice the SVLDRS-3 dated 19.02.2020 only on the website of the CBIC. Thereafter, they tried to make payment of the amount mentioned in the SVLDRS, however, they could not make the payment for the reason of ‘technical glitches’ in the site. It is therefore, submitted that the petitioner cannot be held responsible for ‘technical glitches’ in the site of the CBIC, which was the reason for the petitioner not able to make the meagre payment of Rs.13,895/-.

The Senior Standing Counsel for the respondents submitted that under the scheme everything was online, ie., uploading of SVLDRS-1, SVLDRS-3 and payment. The scheme is complete code. SVLDRS-3 was to be issued by the designated committee within 60 days from the date of receipt of declaration in SVLDRS-1, and after uploading of SVLDRS-3 within 60 days from the receipt of the SVLDRS-1, the payment as per SVLDRS-3 was to be made by the declarant within 30 days from the date of issue of the SVLDRS-3.

A Bench of Justice Dinesh Kumar Singh observed that “Once the petitioner failed to comply with the provisions of the scheme, which is a complete code in itself, this court would not like to extend the limitation for making the payment under the scheme in exercise of its jurisdiction under Article 226 of the Constitution of India.” “I am of the view that the petitioner’s contention that he could notice the SVLDRS-3 only on the website of the CBIC on or around 15.6.2020, and thereafter, he tried to make the payment but he failed for ‘technical glitches’ is not convincing. The petitioner’s allegation that there were ‘technical glitches’ is not supported by any cogent and credible evidence. The petitioner ought to have made the payment within 30 days from 19.02.2020 or till the extended time, which he failed to do so” the Court noted.

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