2025 (7) TMI 568 - HC - Service Tax

Challenge to impugned communication - rejection of benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - rejection of benefit on the ground that the petitioner made payments demanded allegedly beyond 30 days of the Order dated 27 May 2021 declaring the petitioner as eligible to avail of the benefits under the Scheme - HELD THAT - Section 127 (5) deals with the issue of statement by the designated committee inter alia determining the eligibility of the applicant. Such statement was made on 27 May 2021 but it is the case of the petitioner that the same was delivered to the petitioner or was collected by the petitioner only on 31 May 2021. Section 127 (5) provides that declarant shall pay electronically through internet banking the amount payable as indicated in the statement issued by the designated committee within 30 days from the date of issue of such statement. The record indeed shows that though the statement was prepared on 27 May 2021 the same could be said to have been actually issued on 31 May 2021. Admittedly the petitioner -declarant has made the payment electronically on 30 June 2021. Therefore there was compliance with the requirement of Section 127(5) and on this ground neither can the impugned communications could be issued nor the benefits under the SVLDRS Scheme be denied to the petitioner. The impugned communications dated 30 August 2021 and 24 February 2022 are set aside - the respondents are directed to issue necessary discharge certificate under SVLDRS Rules 2019 within four weeks from the date of uploading of this order - petition allowed.

Summary

The Bombay High Court, per M.S. Sonak, J., allowed the petition challenging the impugned communications dated 30 August 2021 and 24 February 2022, which denied the petitioner benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The communications relied on Section 127(5) of the Finance Act, 2019, asserting that payments were made beyond the 30-day period from the issuance of the designated committee's statement dated 27 May 2021.The Court held that although the statement was prepared on 27 May 2021, it was effectively issued on 31 May 2021 when the petitioner received it. Since the petitioner made the electronic payment on 30 June 2021, this complied with the 30-day payment requirement under Section 127(5). Further, the petitioner demonstrated attempts to pay on 25 and 26 June 2021, which failed due to technical glitches.Relying on precedents including Assistant Transport Commissioner v. Nand Singh (1979) 4 SCC 19 and D. Saibaba v. Bar Council of India (2003) 6 SCC 186, the Court found these grounds sufficient to quash the impugned communications and directed issuance of the discharge certificate under SVLDRS Rules, 2019 within four weeks. The Rule was made absolute in terms of the petitioner's prayers.