Sabka Vishwas assessees get extended payment time with interest, aligned to income-tax amnesty scheme timelines

HC, exercising writ jurisdiction, held that assessees under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 for indirect taxes are entitled to parity in payment timelines with the corresponding income-tax amnesty scheme. Observing that the petitioner had expressed readiness to remit the amount on 31.07.2020, the HC granted extension of time to make the payment under the Scheme. The Court directed that such delayed remittance would be subject to interest at 15% per annum from 01.07.2020 until the actual date of payment. The revenue authorities were directed to enable the online portal forthwith, and the petitioner was required to complete remittance within four weeks of receipt of the order.

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Issues:
Assessees under the Central Excise Act seeking extension of time for remittance under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Analysis:
1. W.P.No.2942 of 2021:
- The petitioner filed an application for settlement under the SVLDRS in December 2019 but faced difficulty meeting the payment deadline by June 30, 2020.
- The petitioner later expressed readiness to remit the amount a month later on July 30, 2020, seeking clarity on acceptance.
- The petitioner requested permission to pay the determined amount, which was received by the respondents on July 31, 2020.
- The court allowed an extension for remittance with 15% interest from July 1, 2020, to be paid within four weeks from the order date.

2. W.P.No.19919 of 2020:
- The petitioner delayed remittance till October 17, 2020, seeking an extension, which was beyond the original deadline.
- Despite proof of communication, the delay was not justified, following a precedent related to time extensions.
- The court rejected the petitioner's claim for an extension due to the significant delay in taking necessary steps.

3. Common Observations:
- Discrepancies were noted between the final dates for payment under Direct and Indirect Tax statutes' settlement schemes.
- The court emphasized the need for uniformity in time limits for both schemes to benefit taxpayers.
- A liberal interpretation of the law was applied to extend the time limit for compliance with tax payments.
- Interest at 15% was imposed on delayed payments, emphasizing the importance of timely compliance with tax obligations.

4. Final Decisions:
- W.P.No.2942 of 2021 was disposed of with an extension for remittance and interest payment within four weeks.
- W.P.No.19919 of 2020 was dismissed due to the petitioner's significant delay in taking necessary actions.
- W.P.No.17428 of 2022 was dismissed as withdrawn, with no costs imposed on any party in the writ petitions.

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