2025 (7) TMI 1078 - HC - Service Tax

Seeking appropriate direction to issue Form SVLDRS-4 (discharge certificate) to discharge the liability of the petitioner - non-application of mind while passing impugned order - violation of principles of natural justice - HELD THAT - In the present case there is no dispute with regard to the payment of Rs.16, 70, 022.40/- made by the petitioner. The last date which was specified in the notice for making the above payment under SVLDRS scheme is on or before 30.06.2020. The SVLDRS scheme was subsequently extended upto 29.09.2020 to avail the benefit under the scheme. The petitioner paid the entire arrears amount on 30.06.2020. The 3rd respondent without taking into consideration the extension of above scheme passed the impugned order dated 14.07.2022 demanding a sum of Rs.25, 05, 034/-. Therefore this Court is of the view that the impugned order was passed without any application of mind and hence it is liable to be set aside. The impugned order dated 14.07.2022 passed by the 3rd respondent is set aside. Consequently the respondents are directed to issue Form SVLDRS-4 to discharge the tax liability of the petitioner for the period from 2014-15 to 2017-18 (Up to June 2017) in terms of the provisions of the scheme within a period of four weeks from the date of receipt of a copy of this order - Petition allowed.

Summary

The Madras High Court, through Justice Krishnan Ramasamy, allowed the writ petition challenging the impugned order dated 14.07.2022 passed by the 3rd respondent. The petitioner had paid the entire arrears of Rs.16,70,022.40 under the SVLDRS scheme on or before 30.06.2020, as demanded in Form SVLDRS-3. Although the scheme was extended up to 29.09.2020 by Notification dated 27.06.2020, the 3rd respondent ignored this extension and issued the impugned order demanding Rs.25,05,034/- towards interest and penalty. The Court held that the impugned order was passed "without any application of mind" and therefore liable to be set aside. The respondents were directed to issue Form SVLDRS-4 (discharge certificate) to discharge the petitioner's tax liability for the period 2014-15 to 2017-18 (up to June 2017) in accordance with the scheme, within four weeks. The writ petition was allowed with no costs.