Court directs penalty waiver consideration under Sabka Viswas Scheme for petitioner's tax relief

The Court disposed of the petition without costs, directing Respondent No. 3 to consider the petitioner's representation for penalty waiver under the 'Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019'. The Court emphasized the scheme's objective to relieve businesses from legacy tax burdens and acknowledged the petitioner's circumstances, including delays in tax payments due to the death of a key partner. It highlighted the importance of extending the scheme's benefits to the petitioner's case, urging consideration of the representation for penalty waiver in line with the scheme's objectives and the petitioner's situation.

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Issues:
1. Rejection of Form SVLDRS-1 by Respondent No. 2
2. Eligibility of the petitioner to seek reliefs under the 'Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019'
3. Request for waiver of penalty by the petitioner
4. Consideration of petitioner's representation by Respondent No. 3

Analysis:

Issue 1: Rejection of Form SVLDRS-1 by Respondent No. 2
The petitioner challenged the communication dated 17th March 2020, where Respondent No. 2 rejected Form SVLDRS-1 filed by the petitioner. The rejection was based on alleged incorrect entries made by the petitioner regarding the duty demanded, as mentioned in the Show Cause Notice dated 18th October 2019. The petitioner contended that the duty demanded was correctly mentioned, as per the Show Cause Notice and subsequent forms. The rejection led the petitioner to approach the Court seeking relief.

Issue 2: Eligibility of the petitioner under SVLDRS
The petitioner, a Partnership Firm engaged in construction services, applied for reliefs under the 'Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019'. The petitioner filed Form SVLDRS-1 on 25th December 2019, seeking to resolve its service tax liability. However, Respondent No. 2 issued Form SVLDRS-2 showing the amount payable as NIL, leading to the petitioner filing a fresh Form SVLDRS-1. The petitioner claimed eligibility under SVLDRS based on admitting tax liability during an earlier enquiry. The Court was urged to consider the petitioner's eligibility under SVLDRS.

Issue 3: Request for waiver of penalty
The petitioner expressed willingness to pay the outstanding amount within a specified period and requested the Court not to impose any penalty, citing the objective of SVLDRS to provide relief and allow businesses to focus on GST. The respondent argued against a waiver of penalty, stating that there was no prayer for it in the petition. The Court noted the petitioner's readiness to make payments and the need for Respondent No. 3 to consider the representation for penalty waiver.

Issue 4: Consideration of petitioner's representation by Respondent No. 3
The Court emphasized the objectives of SVLDRS to resolve past disputes and disclose unpaid taxes, aiming to relieve businesses from legacy tax burdens. It acknowledged the petitioner's circumstances, including the death of a key partner causing delays in tax payments. The Court directed Respondent No. 3 to consider the petitioner's representation, keeping in mind the scheme's objectives and the incorrect entries made by the petitioner. The Court highlighted the importance of extending the scheme's benefits to the petitioner's case.

In conclusion, the Court disposed of the petition without costs, emphasizing the need for Respondent No. 3 to consider the petitioner's representation for penalty waiver in light of the SVLDRS scheme's objectives and the petitioner's circumstances.

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