2022 (9) TMI 1003 - HC - Central Excise

Extension granted for Sabka Vishwas Scheme remittance; emphasize timely compliance with tax obligations

M/s. Apnaa Projects Pvt. Ltd., Represented by its Director Mr. Birla Bose, M/s. Sivagurunathan Textiles Limited Versus Joint Commissioner of GST & Central Excise, Assistant Commissioner of GST & Central Excise, Chairman, Central Board of Indirect Tax & Customs, The Designated Committee, Commissioner of GST and Central Excise, Chennai, Central Board of Indirect Taxes and Customs, The Commissioner of GST and Central Excise, The Deputy/Assistant Commissioner of GST & Central Excise, The Sub-Registrar

M/s. Apnaa Projects Pvt. Ltd., Represented by its Director Mr. Birla Bose, M/s. Sivagurunathan Textiles Limited Versus Joint Commissioner of GST & Central ... 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.