Relief to Actor Arjun Rampal: Bombay HC allows SVLDR Scheme Service Tax Benefit on Belated filing due to Portal Issues

In a recent development, the Bombay High Court granted relief to Bollywood actor Arjun Rampal by allowing him to avail the Sabka Vikas Legacy Dispute Resolution (SVLDR) Scheme 2019 to settle service tax dues for the year 2016-2017. The Central government had introduced the scheme on September 1, 2019, to resolve pending litigation under the indirect tax regime, valid until December 31, 2019.

The Division Bench of Justices Nitin Jamdar and Abhay Ahuja observed that Rampal could not be denied the benefits of the scheme due to a technical glitch that was not his fault. The bench directed the authorities to allow Rampal to pay the challan payment of Rs 2.74 lakhs under the SVLDR, settle his tax dues of over Rs 9.16 lakhs, and issue the necessary discharge certificate under the scheme.

Rampal was issued an SVLDRS Form on February 23, 2020, which required an initial payment of Rs 2.74 lakhs. However, due to the nationwide lockdown, he could not visit the bank to make the payment. The Superintendent of Investigation team, Central goods and services tax, sent letters to Rampal informing him that the due date for payment of tax dues had been extended to June 30, 2020.

The actor tried to regenerate the challan from the Central Board of Indirect Taxes and Customs (CBIC) portal to make the payment and even transferred money via RTGS, which was reversed and refunded to Rampal. He again tried to re-generate challans and contact the CGST authorities, which were unsuccessful.

On September 14, 2020, the Central Goods and Services Tax officers informed Rampal that the payment date was no longer extended by the Central government, and his payment had been reversed as his challan had expired. Rampal approached the High Court raising grievances that he was being denied the benefit of the scheme for no fault of his.

The Bombay High Court has now directed the authorities to allow Rampal to pay Rs 2.74 lakhs under the SVLDR scheme and issue the necessary discharge certificate under the said scheme. This judgment highlights the importance of timely payments and the technicalities of tax compliance. In conclusion, the decision brings relief to Rampal and underscores the significance of technical issues in determining tax liabilities.

To Read the full text of the Order CLICK HERE

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