Prior payment under Sabka Vishwas Scheme supported relief where tax remittance was wrongly treated as unpaid.

Prior payment of service tax for the disputed period was treated as decisive for eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Karnataka HC noted that the petitioner had produced challans showing payment during January to May 2017, and the respondents erred in treating those amounts as unpaid for Scheme purposes. On that basis, rejection of the Scheme claim was unsustainable. The impugned orders confirming the demand were quashed, and the matter was directed to be reconsidered with issuance of Form SVLDR-4, subject to verification.

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Issues: Whether the petitioner was entitled to the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in respect of the disputed period, and whether the orders confirming the demand could be quashed despite the petitioner's claim of prior payment already having been made.

Analysis: The petitioner had been issued SVLDRS-3 and had asserted that the service tax for the relevant period had already been paid during January 2017 to May 2017, supported by challans. The Court found that the respondents had erred in treating the payment as unpaid and in holding that the amounts already remitted could not be considered for the purpose of the Scheme. In light of the earlier decision relied upon and the undisputed prior payment, the rejection of the petitioner's claim under the Scheme was unsustainable.

Conclusion: The petitioner was held entitled to the benefit of the Scheme, and the impugned orders were quashed with a direction to reconsider the claim and issue Form SVLDR-4, subject to verification.

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