2021 (7) TMI 385 - HC - Service Tax

Court allows late tax payment under Sabka Vishwas Scheme, 2019 due to COVID-19, emphasizes flexibility and prompt resolution

The court permitted the petitioner to remit the tax demand amount with interest within a week, despite missing the extended deadline under the Sabka ... Seeking direction to Revenue to accept payment pursuant to issuance of Form 3 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 towards full and final settlement of tax dues - HELD THAT:- There are no reason to keep this writ petition pending any more in the light of the position that the petitioner has, according to it, remitted the balance of the amount under its declaration. The petitioner is permitted to make a representation for acceptance of its application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 within a period of one week from today, accompanied by a copy of this order to the Board and the Board is directed to consider the same and pass appropriate orders within a period of four (4) weeks from receipt thereafter. Petition disposed off. Issues:1. Delay in remittance of the quantified amount under the Sabka Vishwas Scheme, 2019.2. Extension of time for payment due to COVID-19 lockdown.3. Comparison with similar judgments and directions given by other courts.4. Lack of clarity on the first respondent's stand in such matters.Issue 1: Delay in Remittance of AmountThe petitioner had a tax demand of &8377; 13,64,516/- and opted for the Sabka Vishwas Scheme, 2019. Despite the deadline extension to 30.06.2020 due to the pandemic, the petitioner failed to remit the amount in time. The petitioner filed a Writ Petition expressing readiness to pay but faced technical difficulties in remittance post the deadline. The court permitted the petitioner to remit the amount with interest within a week, emphasizing that it does not imply acceptance of the relief sought.Issue 2: Extension of Time Due to COVID-19 LockdownAcknowledging the pandemic's impact, the court noted the extension of the payment period under the Scheme to 30.06.2020. The court highlighted the challenges faced by citizens during the lockdown and the need for flexibility in payment timelines. The court directed the petitioner to remit the amount within a specified timeframe, considering the exceptional circumstances.Issue 3: Comparison with Similar JudgmentsThe court referenced a Gujarat High Court case directing a petitioner to deposit the duty amount within a fixed timeframe. It noted the absence of a concrete solution from the Board despite past directions. Another Supreme Court case seeking policy changes was declined, emphasizing that such matters involve policy decisions beyond the court's purview. The court stressed the need for the Board to address the common issue faced by many assessees promptly.Issue 4: Lack of Clarity on Respondent's StandThe court highlighted the lack of clarity on the first respondent's stance in such cases. It urged the Board to make a decision and communicate it to the petitioner before the next hearing date. The court disposed of the writ petition, allowing the petitioner to represent for acceptance under the Scheme, directing the Board to decide within four weeks.The judgment addresses the delay in remittance under the Sabka Vishwas Scheme, 2019 due to the COVID-19 lockdown, emphasizing the need for flexibility and a timely resolution for such cases. It compares similar judgments, highlighting the importance of the Board's proactive approach in resolving common issues faced by taxpayers. The lack of clarity on the respondent's stand underscores the necessity for clear decisions and timely communication in such matters.