Writ Appeals Granted for Tax Dues Settlement under SVLDR Scheme: Relief for Partnership Firm

The Writ Appeals were allowed, setting aside the order dismissing writ petitions related to tax dues settlement under the SVLDR Scheme. The appellant, a partnership firm, was granted relief as the Court interpreted the Taxation and Other Laws Act, 2020 liberally, extending the time limit for tax payment until 30.09.2020. The appellant was allowed to remit taxes with interest if they complied with the conditions, and no costs were awarded. The appropriate authority was directed to consider the appellant's application if requirements were met, closing the connected Miscellaneous Petitions.

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Issues:
Challenge to order dismissing writ petitions seeking direction on tax dues settlement under SVLDR Scheme.

Analysis:
The appellant, a partnership firm, challenged an order confirming Service Tax demand. The appellant applied under the SVLDR Scheme but failed to remit taxes within the stipulated time due to the pandemic and lockdown. The Writ Court noted the time limit for payment had expired, leading to dismissal of the writ petitions. However, in a similar case, relief was granted due to extended payment deadline till 30.06.2020.

The Parliament enacted the Taxation and Other Laws Act, 2020, extending time limits for various actions under different Acts. Section 6 of the Act extended the time limit for completion or compliance of actions till 30.09.2020. This provision included relaxation of time limits under Indirect Tax Laws, such as the Finance Act, 1994. The Act aimed to extend time limits for compliance or completion of specified acts under the Statute.

The Court interpreted the Act liberally, considering the time limit for payment of taxes under the SVLDR Scheme as a time limit for completion of a particular act under the Finance Act. The Court held that the appellant's conduct in filing writ petitions on 29.09.2020 and 30.09.2020 was not delayed due to the extended deadline till 30.09.2020. Therefore, the appellant was allowed to remit taxes, subject to paying interest @ 15% from 01.07.2020 till 17.09.2021, if they comply with this condition.

Consequently, the Writ Appeals were allowed, the impugned order was set aside, and no costs were awarded. The appropriate authority under the SVLDR Scheme was directed to consider the appellant's application if the conditions were met. The connected Miscellaneous Petitions were closed as a result of the judgment.

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