Order Date – 10 August 2023

Parties: M/s. Abirami Engineering Construction & Co. vs. The Commissioner of GST & Central Excise Salem GST Commissionerate and Others

Facts –

• The Petitioner, M/s. Abirami Engineering Construction & Co., had opted to settle a tax dispute under the Sabka Vishwas Scheme in 2019. They made a payment through RTGS on 30th June 2020, but due to a mismatch in the challan amount, the amount was re-credited to their account on 1st July 2020.
• The petitioner sent multiple reminders to resend the amount, but the authorities, informed the petitioner that since due date for payment of tax under the scheme expired on 30.06.2020 and therefore rejecting the request of the petitioner cannot be accepted.

Issue –

• Whether the petitioner can settle their tax dispute under the Sabka Vishwas Scheme despite a technical glitch in the payment processing?

Order –

• The Single Bench of Hon’ble High Court referred to its decision in the case of Subramaniya Siva Co-operative Sugar Mills Ltd., vs. Union of India, 2022(67) G.S.T.L 424 (Mad.) held that the benefit of the scheme cannot be denied due to a technical glitch in payment processing. Furthermore, it emphasized that the scheme was designed to allow defaulters to settle their dues and find resolution, regardless of technical hindrances.
• The issue is covered in favour of the petitioner and therefore the writ petition deserves to be allowed. The petitioner was instructed to pay interest at 7.5% being the bank interest during the period commencing from 01.07.2020 at the date of re-credit of the amount till the  date of payment. The petitioner shall pay the aforesaid amount together with  interest at 7.5% p.a. within a period of 45 days from the date of receipt of a copy of this order.
• The writ petition disposed of.