A Division Bench of the Bombay High Court has recently directed the revenue to accept the payment of Rs. 25,68,362.50/- to be made by the Petitioner in lieu of technical glitch disabling the payment of Dues as per SVLDRS Scheme on time.
Sriram Sridharan represented the Petitioner and Siddharth Chandrashekhar appeared for the Respondents.
Petitioner challenges letters issued by Respondent No. 4-Deputy Commissioner, CGST & Central Excise, Belapur whereby the Petitioner was informed that the application under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (“SVLDRS”) cannot be processed since the Petitioner has failed to make the payment of the amount mentioned in SVLDRS-3 form.
Therefore, the Petitioner was directed to make the payment of the demand raised vide the order in original issued on 21st June 2017.
The Petitioner is engaged in the business of providing technical testing and analysis certification services. Pursuant to the show cause notice issued in the year 2015, the order in original came to be passed on 9th February 2017 raising a demand notice of Rs.64,20,907/-, against which a writ petition was filed before the Bombay High Court.
While the aforesaid writ petition was pending, Respondent No.1 introduced the SVLDRS. The object of the scheme was to give an opportunity to the assessees to pay up the demand and reduce litigation. On 31st December 2019, the Petitioner filed a declaration in form SVLDRS-1 to avail the benefit of the scheme.
As a pre-condition for availing the benefit of the scheme, the Petitioner also withdrew the above referred Writ Petition No.1530 of 2019.
Petitioner generated challan for making the said payment and after the said challan was generated on the portal of the Respondents, the Petitioner was directed to another portal for making the payment.
However, a technical error appeared and, therefore, Petitioner was not able to make the payment.
The date for making the payment was thereafter extended by the Respondents upto 30th June 2020 by the Taxation and Other Laws (Relaxation of Amendment of Certain Provisions) Act, 2020. The Petitioner informed the Respondents about the said error. On 9th November 2020, Respondent No.3 informed the Petitioner that since they have not made payment, their application cannot be processed further.
The Petitioner submitted that it had generated the challan on the portal within 30 days of the issue of Form SVLDRS-3 and further clicked the “make payment” option, but an error was shown on the screen and, therefore, they could not make the payment within 30 days from the date of issue of Form SVLDRS-3.
The Petitioner relied upon averments made in paragraphs 18 to 28 of the petition to submit that they had brought this error due to technical glitch to the notice of the Respondents. The Petitioner submitted that since non-payment cannot be attributed to them on account of technical glitch on the portal of the Respondents, the Petitioner cannot be denied the benefit of the SVLDR scheme more so looking at the objective for which the said scheme was introduced, that is, to reduce the litigation.
The Petitioner generated a challan on the portal of the Respondents on 26th March 2020 which is within 30 days and again on 30th June 2020, but on account of technical glitch on the portal of the Respondents, the Petitioner could not make the payment.
The bench of Justice K R Shriram and Justice Jitendra Jain observed that the Respondents having not rebutted the averments made by the Petitioner, that on account of technical glitch, the Petitioner could not make the payment and a grievance was raised by the Petitioner with the Respondents on this count and the admitted fact, that Petitioner is willing to make payment.
It was thus observed that, Petitioner should not be denied the benefit of the SVLDRS when no fault can be attributed to the Petitioner.
It was noted that the Petitioner is justified in relying upon the decision of the Coordinate Bench of this Court in the case of Jai Sai Ram Mech & Tech India P. Ltd. (supra) and Innovative Antares Pvt. Ltd. (supra) wherein on identical facts situation this Court had permitted declarant to make the payment and avail the benefit of SVLDR scheme.
It was remarked that the bench did not find any reason for taking a different view.
It was thus held that, “The Respondents are directed to accept the payment of Rs.25,68,362.50/- to be made by the Petitioner within four weeks from the date of uploading of this order.”
It was further added that, Thereafter Respondents are directed to issue SVLDRS-4 certificate within a period of four weeks from the date of the Petitioner having made the payment.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
