Service Tax
TRT-2025-
Uttarakhand High Court
Date:-09-09-22
In:-
Issue Favourable to Tax Payer ?:-
Order date: 09 September 2022
Facts:
- The Petitioner, M/s Patanjali Ayurved Ltd., has prayed for the issuance of a writ of certiorari for quashing Form SVLDRS No. 3 L050320SV300423 dated 05.03.2020 issued by the respondents namely (Commissioner of Central Excise & Service Tax & Anr).
- The issue is “whether the amount paid by the petitioner, under protest, towards interest, prior to issuance of show cause shall be considered as pre-deposit while disposing his application for waiver under ‘Sabka Vikas (Legacy Dispute Resolution) Scheme,
- The Petitioner requested Respondent to adjust amount of Rs. 3,19,69,680/- toward the deposit they already made. Alternative, the petitioner Company has also prayed to direct Respondent to refund the amount of Rs. 3,19,69,680/- with 18% interest per annum.
Issue:
- Whether the amount paid by the petitioner, under protest, towards interest, prior to issuance of show cause shall be considered as pre-deposit?
Order:
- The High Court observed that section 124 of the Finance Act, 2019, is a benevolent provision. The Parliament in its wise discretion thought it proper to grant one time relief to all tax payers under the GST Scheme so that disputes can be resolved amicably and restrictive parochial interpretation of the provisions should be avoided by the Courts and also by the Authorities so that objects of the beneficial scheme can be Achieved.
- Therefore, this Court, even though was informed that the Scheme has already come to its conclusion and the auto-populated form has already expired, the Court is inclined to allow the writ petition.
- Hence, the Court quashed Form SVLDRS-3 and directed the Designated Committed to reconsider the claim of the petitioner after adjusting the amount paid towards interest to be specific RS. 3,19,69,680/- in accordance with law and the petitioner is also directed to make the payments, if any, within three weeks from the date the designated Committee issues SVLDRS-3.
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