2023 (12) TMI 1071 - HC - Service Tax

Court Overturns Service Tax Order; Directs Acceptance of Payment Under SVLDRS with Pandemic Considerations.

The HC allowed the writ petition, setting aside the impugned order related to a service tax demand under the SVLDRS scheme. The court directed the ... Sabka Viswas Scheme (SVLDRS) - petitioner not able to pay the demanded amount in time - HELD THAT:- In W.P.No.24366 of 2021 [2023 (11) TMI 899 - MADRAS HIGH COURT], a similar set of facts was already considered and a detailed order was also passed by this Court where it was held that this Court is of the view that the application, filed on 13.02.2023 consequent to the payment made by the petitioner, has to be accepted under the SVLDRS scheme by the respondent and in such view of the matter, this Court has no hesitation to direct the respondent to issue Form SVLDRS-4 to discharge the tax liabilities within a period of 30 days from the date of receipt of copy of this order. The impugned order dated 24.08.2021 is set aside. Further, the 2nd respondent is directed to accept the payment made by the petitioner in terms of Form SVLDRS 3 and issue a Certificate of Settlement in Form SVLDRS 4 within a period of four weeks from the date of receipt of copy of this order - the writ petition is allowed. Issues involved:The judgment involves a challenge to an impugned communication issued by the respondent regarding a service tax demand, the application of the Sabka Viswas Scheme (SVLDRS), the extension of time limits due to the COVID-19 pandemic, and the rejection of the petitioner's representation.Challenge to Impugned Communication:The petitioner challenged a communication issued by the respondent confirming a service tax demand. The petitioner had filed an appeal against the assessment order and subsequently availed the SVLDRS by filing necessary forms. Due to pandemic-related lockdown, the petitioner faced difficulties in paying the demanded amount, leading to a writ petition to direct acceptance of a partial payment. The court passed interim and final orders allowing the petitioner to deposit the amount, but the respondent rejected the representation, leading to the current writ petition.Application of SVLDRS Scheme and Time Limit Extension:The judgment highlighted the provisions of the SVLDRS scheme introduced by the Government and the extensions of time limits for availing the scheme and making tax payments due to the COVID-19 pandemic. The court emphasized that the provisions regarding time limits were directory, not mandatory, as evidenced by the Central Government's discretion in extending deadlines based on prevailing situations. The court also referenced a Supreme Court order extending limitation provisions due to the pandemic and emphasized the importance of considering the petitioner's inability to pay during the pandemic while making decisions.Rejection of Representation and Court's Decision:The court considered a previous order in a similar case and concluded that the petitioner's application should be accepted under the SVLDRS scheme. The court directed the respondent to issue a discharge certificate to the petitioner within a specified timeframe. The judgment allowed the writ petition, set aside the impugned order, and instructed the respondent to accept the payment made by the petitioner and issue a Certificate of Settlement accordingly. No costs were awarded, and the connected miscellaneous petition was closed.Separate Judgment:The judgment was delivered by Hon'ble Mr. Justice Krishnan Ramasamy.