Amnesty scheme benefit denied for late service tax payment on coaching services under SVLDRS

The Kerala HC dismissed an appeal where the appellant sought benefit under the SVLDRS amnesty scheme for non-payment of service tax on commercial training and coaching services. The court rejected the appellant's claim of technical glitches preventing payment, noting that the appellant became aware of the payment requirement only on 15.06.2020, well after the 31.03.2020 deadline. Despite accessing the portal on 29.06.2020, no payment attempt was recorded. The court held that amnesty scheme terms must be strictly construed in favor of revenue, denying the benefit to the appellant.

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Issues involved:
The judgment involves the issue of availing the benefit of the "SABKA VISHWAS" [Legacy Dispute Resolution] Scheme and the failure to make timely payments under the Scheme.

Summary of the Judgment:

Issue 1: Availing Benefit of Amnesty Scheme
The appellant, running a coaching center, was issued a show cause notice for non-payment of service tax. The appellant opted for the Amnesty Scheme and uploaded the required declaration form. However, the appellant failed to make the payment within the prescribed time frame despite claiming technical glitches as the reason. The court found that the appellant was aware of the time schedule for payment under the Scheme but failed to make the payment on time. The appellant's conduct did not warrant the grant of relief sought in the Writ Petition.

Issue 2: Failure to Make Timely Payments
The appellant contended that technical glitches prevented him from making the payment on the last date specified under the Scheme. However, a report revealed that there were no attempts to make the payment on the relevant dates. The court noted that the appellant was well aware of the strict time schedule for payments under the Scheme. Despite accessing the web portal, the appellant did not make the required payment. The court held that the appellant cannot avail the benefit of the Scheme due to the failure to adhere to the payment schedule. The Writ Appeal was dismissed without prejudice to the appellant's right to appeal before the statutory appellate authority.

In conclusion, the court dismissed the Writ Appeal, emphasizing the strict adherence to the payment schedule under the Amnesty Scheme and ruling against the appellant's request for leniency based on technical glitches and delayed payment attempts.

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