The Madras High Court allowed the remission of GST as quantified under SabkaVishwas (Legacy Dispute Resolution) (SVLDR) Scheme subject to payment of 15% interest. 

The appellant, N.Sundararajan who was the Former Partner M/s.Yarn Bliss is a partnership firm carrying on business of yarn brokerage/commission agent for M/s.Kandagiri Spinning Mills Pvt. Ltd., Salem. A show cause notice was issued by the respondent, demanding Service Tax. The appellant objected to the demand, yet, by Order-in- Original, the demand proposed in the show cause notice, as well as the penalty, was confirmed. The appellant filed an appeal before the first Appellate Authority, which was dismissed. Thereafter, the appellant filed application under the SVLDR Scheme and the application was found to be in order and was processed and Form-3 was issued. In terms of the said Form, the assessee was required to remit the entire taxes within 30 days from the date of issue of Form-3. Therefore, the remittance ought to have been done on or before 27.01.2020. 

However, this stood extended till 30.04.2020. Subsequently, Rule 7 of the Sabka Vikas (Legacy Dispute Resolution Scheme) Rules, 2019, which stipulated the period of limitation, was amended and the time was extended till 30.06.2020. The appellant’s case before the learned Writ Court was that, on account of the Pandemic and lockdown, the appellant was put to great prejudice and they could not comply with the requirement of payment of the taxes within the time stipulated and therefore, they sought for a direction upon thet respondent to accept the payment of taxes in terms of Form-3 notice, which was issued to the appellant.

The appellant sought for a direction upon the respondent to accept the payments in terms of Sabka Vikas (Legacy Dispute Resolution Scheme), 2019, in Form-3, in compliance with Section 127 of the Finance (No.2) Act, 2019, towards full and final settlement of tax dues and to issue a certificate of Settlement in Form-4 under the SVLDR Scheme.

The division bench of Justice T.S. Sivagnanam and Justice Sathi Kumar Sukumar Sukumara Kurup ruled that the time limit for completion of the payment of taxes, as quantified in Form-3, also stood extended till 30.09.2020. If that is the date on which the appellants were required to complete the payment, then the appellant’s conduct in approaching this Court by filing the writ petitions on 29.09.2020 and 30.09.2020 can very well be reckoned to be a conduct, which will not be hit by delay and laches.

“We are of the view that the appellant should be permitted to remit the taxes, as quantified in the Form-3 declaration issued to the appellant, subject to of course by also paying interest @ 15% from 01.07.2020 till the date of remittance, which we shall fix as on or before 17.09.2021. If the appellants comply with the said condition, then the appropriate authority under the SVLDR Scheme shall consider the appellant’s application and proceed in accordance with the provisions of the said Scheme,” the court said.