No court relief for missed Sabka Vishwas payments; Rule 7 deadline fixed, limitation extensions inapplicable

HC dismissed the writ petition seeking extension of time for payment under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. It held that the petitioner's reliance on SC orders extending limitation periods was misconceived, as such extensions do not alter substantive timelines prescribed in a fiscal amnesty scheme. The declarations were under the "arrears" category, with 30.06.2020 as the final date for payment under Rule 7, which the petitioner failed to meet. Referring to binding SC precedent, HC held that courts cannot extend or modify statutory scheme deadlines, as this is exclusively within the Government's prerogative.

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Issues Involved:
1. Eligibility of the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
2. Consideration of pre-deposit amounts already paid by the petitioner.
3. Impact of COVID-19 pandemic on the timelines for payment under the scheme.

Summary:

Issue 1: Eligibility of the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The petitioner filed a petition under Article 226 of the Constitution of India seeking reliefs related to the Sabka Vishwas Scheme. The petitioner, engaged in the business of washing and dry cleaning services, faced delays in filing ST-3 returns for the periods between October 2014 and March 2017. The petitioner argued eligibility under Section 125 of the Finance Act, 2019, which specifies that any amount paid as pre-deposit at any stage of appellate proceedings should be deducted when issuing the statement indicating the amount payable by the declarant. The court noted that the petitioner filed five declarations under the scheme for different periods but did not pay the declared service tax liability by the due date of 30.06.2020.

Issue 2: Consideration of pre-deposit amounts already paid by the petitioner

The petitioner contended that an amount of Rs. 27,93,323/- paid during the period 2014-15 to 2017-18 should be considered as a pre-deposit. The petitioner claimed that the Chartered Accountant had filed the declarations without adjusting the already deposited amount. The respondents, however, did not consider this amount while issuing Form SVLDRS-3, resulting in a payable amount of Rs. 39,14,954/-. The court observed that the petitioner's belief that the pre-deposit would be adjusted was misconceived and that no declaration regarding pre-deposit was made at the time of filing.

Issue 3: Impact of COVID-19 pandemic on the timelines for payment under the scheme

The petitioner argued that the COVID-19 pandemic and subsequent orders by the Supreme Court extending limitation periods should apply to the payment timelines under the Sabka Vishwas Scheme. The court, however, clarified that the Supreme Court's orders on extending limitation periods were applicable to judicial or quasi-judicial proceedings and not to the due dates for payment under the scheme. The petitioner's first claim of pre-deposit was made by a letter dated 07.06.2021, almost a year after the last date for making payment under the scheme, which was beyond the permissible limit.

Conclusion:

The court concluded that accepting the petitioner's case would amount to modifying the scheme, which is not permissible. Citing the Supreme Court's decision in M/S Yashi Constructions vs. Union Of India, the court emphasized that the terms and conditions of the scheme must be adhered to strictly. Consequently, the petition was dismissed, and any interim relief was vacated.

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