P.J. Edison vs The Assistant Commissioner Of ...
2022 Latest Caselaw 9927 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                THE HONOURABLE MR. JUSTICE GOPINATH P.
     WEDNESDAY, THE 31ST DAY OF AUGUST 2022 / 9TH BHADRA, 1944
                       WP(C) NO. 27217 OF 2022
PETITIONER:

          P.J. EDISON
          AGED 59 YEARS
          S/O P.P. JOHNSON, ELEKTRO CONTROLS, PADAVAN HOUSE,
          MISSION QUARTERS, THRISSUR,, PIN - 680001

          BY ADV R.RAMADAS



RESPONDENTS:

    1     THE ASSISTANT COMMISSIONER OF CENTRAL TAX AND CENTRAL
          EXCISE,
          OFFICE OF THE ASSISTANT COMMISSIONER OF CENTRAL TAX AND
          CENTRAL EXCISE, THRISSUR DIVISION, S.T. NAGAR,
          THRISSUR,, PIN - 680001

    2     THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE,
          THRISSUR RANGE, GROUND FLOOR, C.R. BUILDING, S.T.
          NAGAR, THRISSUR,, PIN - 680001

    3     THE PRINCIPAL COMMISSIONER OF CENTRAL TAX AND CENTRAL
          EXCISE,
          COCHIN COMMISSIONERATE, C.R. BUILDING, I.S. PRESS ROAD,
          KOCHI , PIN - 680001

          ADV. SREELAL N. WARRIER, SR. S.C.


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P (C) No.27217/2022                     -2-

                                  JUDGMENT

The petitioner faced demand for the service tax which he sought to settle

under the 'Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019' (hereinafter

referred to the 'Scheme'). On the petitioner filing the necessary application under

the Scheme, he was informed that he will have to remit an amount of Rs.47,174.70

in full and final settlement of liability under the provisions of the scheme. The

amount was to be paid on or before 30-06-2020. It is not disputed before me that

the petitioner attempted to pay the amount on 30-06-2020 by rounding off the

figure to Rs.47,175/-. It is submitted that the petitioner had paid the amount as

above on account of the provisions contained in Section 37 (d) of the Central Excise

Act as applicable to the Finance Act, 1994 which require the amount in fraction to

be rounded off to nearest rupee. However on account of the fact that the system

would accept payment of the exact amount only, the payment made by the

petitioner on 30-06-2020 bounced back. It is also not in dispute before me that the

attempt by the petitioner to make payment on 1 st July 2020 also met with same fate.

Thereafter the petitioner remitted Rs.47,174.70 on 2 nd July, 2020. However the

same has been treated as a payment made beyond the time stipulated in the scheme

and therefore the petitioner's application for settlement is now to be rejected.

2. Having heard the learned counsel for the petitioner and the learned

Senior Standing Counsel appearing for the respondents, I am of the view that the

petitioner is entitled to succeed. The provisions of Section 37 (d) of the Central

Excise Act which applies to the Finance Act, 1994 require the petitioner to round off

any fraction of a rupee to the nearest rupee. Therefore the petitioner was right in

attempting to pay a sum of Rs.47,175/- instead of Rs.47,174.7o. It is also to be noted

that after attempting to pay the amount of Rs.47,175/- on 30-06-2020 and again on

01-07-2020 the petitioner paid the amount of Rs.47,174.70 which was accepted on

02-07-2020. In the above fact circumstances I am clearly of the view that the

petitioner cannot be said to have failed in any manner to comply with the terms of

the scheme. This writ petition is therefore allowed and respondents shall treat the

payment made by the petitioner on 02-07-2020 as a payment in terms of the

scheme. The competent authority shall issue discharge certificate, in terms of the

scheme. In the light of the above, Ext.P4 order will stand set aside.

Sd/-

GOPINATH P.

JUDGE AMG

APPENDIX OF WP(C) 27217/2022

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF APPLICATION DATED 14.01.2020 SUBMITTED BY THE PETITIONER IN FORM SVLDRS 1

Exhibit P2 TRUE COPY OF CHALLAN RECEIVED BY THE PETITIONER FOR PAYMENT OF RS.47,174.70/- UNDER THE SVLDRS SCHEME

Exhibit P3 TRUE COPY OF BANK STATEMENT OF THE PETITIONER FOR THE PERIOD FROM 01.04.2020 TO 31.03.2021 IN RESPECT OF THE ACCOUNT MAINTAINED BY THE PETITIONER IN HDFC BANK, THRISSUR,

Exhibit P4 TRUE COPY OF ORDER DATED 30.11.2021 IN ORDER NO.12/2021-2022-ST CONFIRMING THE DEMAND OF RS.1,10,199/- TOWARDS SERVICE TAX, EDUCATION CESS AND SECONDARY HIGHER EDUCATION CESS AS PER SECTION 73 (2) OF THE FINANCE ACT, 1994.

Exhibit P5 TRUE COPY OF NOTICE DATED 08.07.202 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DIRECTING TO REMIT THE AMOUNT SHOWN IN EXT.P4 IMMEDIATELY.

Exhibit P6 TRUE COPY OF JUDGMENT DATED 01.04.2022 IN W.P (MD) NO.4260/2022 AND CONNECTED CASES PASSED BY THE LEARNED SINGLE JUDGE OF MADURAI BENCH OF THE MADRAS HIGH COURT