Interpretation of Sabka Vishwas Scheme for Construction Companies amid Pandemic Challenges

The High Court interpreted the Sabka Vishwas Scheme liberally, allowing a construction company to make a payment under the scheme despite challenges faced during the pandemic and lockdown. The court emphasized reducing litigation and facilitating immediate tax recovery, directing the petitioner to pay within a specified period to benefit from the scheme. Another similar petition was disposed of similarly, requiring payment within a specific timeframe for certificate issuance, without imposing costs.

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Issues involved:
The issues involved in this case include a petition under Article 226 of the Constitution of India seeking relief through a writ of mandamus, interim injunction, and other appropriate directions related to the Sabka Vishwas (Legacy Dispute Resolution Scheme) 2019.

Issue 1 - Relief sought under Article 226:
The petitioner, a construction company registered under the Goods and Service Tax Act, sought relief through a writ of mandamus to allow payment of a disputed sum under the Sabka Vishwas (Legacy Dispute Resolution Scheme) 2019. The petitioner also requested interim injunction against a show cause notice issued by the respondents.

Details:
- The petitioner was issued a show cause notice demanding payment while the Sabka Vishwas Scheme was introduced to resolve disputes under indirect tax enactments.
- The petitioner applied under the scheme and made a payment, which was reversed due to a technical glitch and subsequent lockdown.
- Despite requesting the respondents to accept the payment, there was no response, leading to the filing of the petition.

Issue 2 - Interpretation of the Sabka Vishwas Scheme:
The High Court interpreted the Sabka Vishwas Scheme liberally, considering its objective of reducing litigation and benefiting all stakeholders, including the government's immediate tax recovery. The court acknowledged the impact of the pandemic and lockdown on businesses, allowing the petitioner another opportunity to make the payment under the scheme.

Details:
- The court emphasized the scheme's objective of reducing litigation and immediate tax recovery for the government.
- Due to the pandemic and lockdown disruptions, the petitioner faced challenges in making the payment initially.
- Citing a similar case, the court directed the petitioner to make the payment within a specified period to benefit from the scheme.

Separate Judgment - Writ Petition No. 5260 of 2021:
Another petition with similar facts was disposed of in line with the judgment in Writ Petition No. 5259 of 2021, directing the petitioner to make a payment under the Sabka Vishwas Scheme within a specific timeframe for the issuance of a final certificate.

Details:
- The facts of this petition mirrored those of Writ Petition No. 5259 of 2021, leading to a similar outcome in terms of payment and certificate issuance.
- Both petitions were disposed of without any costs imposed.

This judgment highlights the court's interpretation of the Sabka Vishwas Scheme, considering the challenges faced by businesses during the pandemic and providing clarity on the payment process under the scheme.

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