Petition granted, discharge certificate ordered under Rule 7

The Court allowed the petition, quashing the decision of the Designated Committee and directing the issuance of the Discharge Certificate. The Court emphasized that the petitioners' payment, debited on 30.06.2020 and credited on 1.07.2020, should be considered valid under Rule 7 of the SVLDRS Rules. The respondents were instructed to issue the Discharge Certificate within four weeks, recognizing the petitioners' efforts and the technical issues they faced. The rule was made absolute, and no costs were awarded.

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Issues Involved:
1. Whether the petitioners were justified in seeking a Discharge Certificate under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) despite the payment being credited to the Government account one day late due to technical issues.
2. Whether the respondents were justified in rejecting the petitioners' declaration under SVLDRS on the ground of delayed payment.

Issue-wise Detailed Analysis:

1. Justification for Seeking Discharge Certificate:
The petitioners filed a declaration under SVLDRS for settling outstanding service tax dues. The Designated Committee issued an estimate, and the petitioners were required to pay the determined amount by 30.06.2020. The petitioners generated a mandate challan on 29.06.2020 and attempted to transfer the amount on 29/30.06.2020. However, due to technical errors on the electronic portal, the payment was credited to the Government account on 1.07.2020. The petitioners promptly notified the authorities of the issue and provided evidence of the bank processing the payment on 30.06.2020. The Court noted that the petitioners' bank account was debited on 30.06.2020, which should be considered as the date of payment. The Court emphasized that SVLDRS is a beneficial scheme intended to resolve tax disputes and that the petitioners should not be penalized for technical glitches beyond their control.

2. Respondents' Rejection of Declaration:
The respondents argued that the petitioners were negligent in making the payment on the last date and that the payment was credited on 1.07.2020, beyond the stipulated deadline. They contended that the scheme's provisions and FAQs clearly stated that failure to pay within the specified time would render the declaration lapsed. The respondents also highlighted that many taxpayers successfully made payments on the due dates without issues. However, the Court found that the petitioners had taken all necessary steps to make the payment on time and that the delay was due to technical errors on the portal. The Court held that the respondents' rejection of the petitioners' declaration was contrary to the legislative intent of SVLDRS and that the petitioners were entitled to the benefits of the scheme.

Conclusion:
The Court allowed the petition, quashing the decision of the Designated Committee and directing the issuance of the Discharge Certificate. The Court emphasized that the petitioners' payment, debited on 30.06.2020 and credited on 1.07.2020, should be considered valid under Rule 7 of the SVLDRS Rules. The respondents were instructed to issue the Discharge Certificate within four weeks, recognizing the petitioners' efforts and the technical issues they faced. The rule was made absolute, and no costs were awarded.

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