Remedial scheme protection: genuine electronic payment failure during an extended period warrants relief and quashing of arbitrary rejection.

Benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme cannot be withheld on hyper-technical grounds when the applicant is not at fault; genuine technical inability to complete mandated electronic payment (including CPIN expiry and returned payments) during an extended period attributable to force majeure constitutes a valid impediment and warrants relief. Where administrative rejection rests on non-payment despite demonstrated attempts and communications about technical failure, such rejection and consequential attachment may be quashed as arbitrary and a non-application of mind. Operative effect: the administrative rejection and attachment are to be set aside and the competent authority directed to issue the scheme form within a specified period.

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Issues: Whether the Respondents were justified in rejecting the Petitioner's claim under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and refusing to issue Form SVLDRS-4 on the ground that payment was not made within the stipulated time when the Petitioner made the payment during the extended period but faced technical difficulties in generation/upload of challan.

Analysis: The petition challenges the administrative rejection dated 13.12.2023 and seeks quashing of that rejection and the earlier attachment dated 18.01.2016. The Court examined the object and purpose of the SVS, 2019 as a one-time measure intended for liquidation of legacy disputes and disclosure of unpaid taxes and noted authoritative decisions holding that benefits under the scheme should not be denied on hyper-technical grounds for which the assessee is not at fault. The Petitioner demonstrated payment during the period extended because of the COVID-19 pandemic and showed repeated attempts and communications regarding technical failure to generate/upload the challan; the Department relied on non-payment within the original timeframe. Considering the scheme's remedial object, the Court treated the technical inability to complete electronic payment (including automatic CPIN expiry and returned payment) as a genuine difficulty and found the rejection to be arbitrary and to amount to non-application of mind, contrary to settled precedents permitting relief where procedural formalities break down due to factors beyond the petitioner's control.

Conclusion: The letter/order dated 13th December 2023 rejecting issuance of Form SVLDRS-4 is quashed and set aside; the order of attachment dated 18th January 2016 is quashed and set aside; the Respondents are directed to issue Form SVLDRS-4 to the Petitioner within four weeks.

Ratio Decidendi: Where a statutory or executive settlement scheme is intended as a one-time remedial measure, benefits under the scheme cannot be denied on hyper-technical grounds for which the applicant is not responsible; genuine technical inability to comply with electronic payment formalities, especially during a period extended for force majeure, warrants relief and quashing of administrative rejection.

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