Delayed Sabka Vishwas payment regularized, assessee to pay 15% interest before receiving final discharge certificate

HC, exercising writ jurisdiction, directed revenue to regularize the assessee's delayed balance payment under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Court noted that the principal tax dues quantified under the scheme had been fully remitted, though beyond the prescribed timeline, and that the scheme's object is dispute resolution and revenue realization. To balance equities and avoid prejudice to the revenue, HC ordered the assessee to pay interest at 15% per annum from 01.10.2020 until the respective dates of payment, with pro rata adjustment. Upon such interest payment, the authority must issue the discharge certificate within three weeks.

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Issues:
The issues involved in this case are related to the acceptance of an application under the Sabkha Vishwas (Legacy Dispute Resolution) Scheme, 2019, the time limit for making balance payment under the scheme, and the compliance with the scheme's repayment terms.

Acceptance of Application under the Scheme:
The petitioner, engaged in storage and warehousing services, was directed to pay a significant amount towards tax dues under the GST regime. Due to various reasons including the COVID-19 lockdown and business losses, the petitioner could not avail the appellate remedy. Subsequently, the petitioner opted for the Sabkha Vishwas Scheme, 2019, which provided relief on interest, penalty, and fine. The petitioner filed the necessary forms under the scheme for reduction in the taxable amount. However, due to delays in processing and payment schedules, the petitioner faced challenges in adhering to the scheme's timelines.

Time Limit Extension and Compliance with Repayment Terms:
The petitioner, despite making partial payments towards the tax dues under the scheme, faced issues with the time limit for full payment. The petitioner requested an extension and sent representations to the respondents for accepting the balance amount due. The respondents contended that the petitioner had not complied with the repayment terms of the scheme, citing violations of the Finance Act, 2019. The Court directed the petitioner to pay the balance amount, which was subsequently remitted. Considering the special circumstances of the case, the Court ordered the petitioner to pay interest at a specified rate from a certain date until the respective payments were made. The payment of interest was deemed necessary to ensure that the revenue was not prejudiced, and a discharge certificate was to be issued upon completion of the payment within a specified timeframe.

Conclusion:
The writ petition was disposed of with the petitioner being directed to pay the interest as ordered. No costs were awarded, and the connected Miscellaneous Petition was closed. The judgment highlighted the importance of adhering to the repayment terms of the scheme while considering the unique circumstances of the case.

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