2024 (8) TMI 264 - AT - Service Tax

Appellant gets discharge certificate under SVLDRS 2019 despite delayed payment due to COVID-19 technical difficulties

CSN Logistics Pvt Ltd Versus Commissioner of Central Tax Secunderabad - GST

CSN Logistics Pvt Ltd Versus Commissioner of Central Tax Secunderabad - GST - TMI Issues Involved:1. Timeliness of payment under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS).2. Validity of the demand for interest and penalty for delayed payment.3. Applicability of statutory extensions due to COVID-19.Issue-wise Detailed Analysis:1. Timeliness of Payment under SVLDRS:The primary issue was whether the payment made by the Appellant on 25.08.2020 was within the permissible time under the SVLDRS. The Appellant argued that the time limit for payment was extended due to COVID-19, citing various judgments and amendments. The Department contended that the payment was not made by the extended deadline of 30.06.2020, referencing the Supreme Court's judgment in M/s Yashi Construction Vs UOI, which stated that the date could not be extended beyond what was provided under the scheme.2. Validity of the Demand for Interest and Penalty for Delayed Payment:The Original Authority and Commissioner (Appeals) upheld the demand for interest and penalty, stating that the Appellant failed to pay the determined amount within the stipulated time. The Appellant contended that due to technical glitches and subsequent extensions, the payment was made within the permissible period.3. Applicability of Statutory Extensions Due to COVID-19:The Appellant relied on judgments from various High Courts, which extended the limitation period due to the COVID-19 pandemic, as per the Supreme Court's suo moto writ petition. The Department argued that these extensions did not apply to the SVLDRS payments, referencing specific cases where courts upheld the original deadlines.Judgment Analysis:Timeliness of Payment:The Tribunal found that the Appellant made the payment on 25.08.2020, within the extended period allowed due to COVID-19. The Tribunal noted that the Central Government had amended the rules to extend the payment deadline and that the Department had considered further extensions due to the pandemic.Demand for Interest and Penalty:The Tribunal concluded that since the Appellant made the payment within the extended period, they were entitled to amnesty from interest and penalty. The Tribunal set aside the demand for interest and penalty, stating that the Appellant had discharged their liability under the SVLDRS within the permissible time limit.Statutory Extensions Due to COVID-19:The Tribunal relied on various High Court judgments, which extended the limitation period due to COVID-19, and found that these extensions applied to the SVLDRS payments. The Tribunal noted that the Supreme Court's general relaxation in limitation due to the pandemic was not considered in the Department's cited cases.Conclusion:The Tribunal allowed the appeal, stating that the Appellant had made the payment within the extended time limit and was entitled to the discharge certificate under SVLDRS-4. The demand for interest and penalty was set aside, and the competent authority was directed to issue the requisite discharge certificate.Final Order:The appeal was allowed, and the demand for interest and penalty was set aside. The competent authority was directed to issue the SVLDRS-4 discharge certificate. The judgment was pronounced in the Open Court on 31.07.2024.