Kerala High Court
Binu Purushothaman vs Assistant Commissioner on 7 November, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:82826
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 7TH DAY OF NOVEMBER 2024 / 16TH KARTHIKA, 1946
WP(C) NO. 28483 OF 2024
PETITIONER:
BINU PURUSHOTHAMAN,
AGED 53 YEARS,
PROPRIETOR, TELE TECH ENGINEERS & CONTRACTORS PMC/X592
-386, II/ 386, MG COMPLEX, NH 208, TB JUNCTION,
VALACODE P.O., PUNALUR, KOLLAM, PIN - 691331.
BY ADVS.
R.JAIKRISHNA
NARAYANI HARIKRISHNAN
C.S.ARUN SHANKAR
GANESAN M.
ANISH P.
RESPONDENTS:
1 ASSISTANT COMMISSIONER,
OFFICE OF ASSISTANT COMMISSIONER,CENTRAL TAX AND
CENTRAL EXCISE, KOLLAM DIVISION, ST MARY'S BUILDING
KADAPPAKADA, KOLLAM, PIN - 691008.
2 SUPERINTENDENT OF CENTRAL TAXES AND CENTRAL EXCISE,
AREAR CELL, OFFICE OF SUPERINTENDENT, CENTRAL TAX AND
CENTRAL EXCISE, KOLLAM DIVISION, ST MARY'S BUILDING,
KADAPPAKADA, KOLLAM, PIN - 691008.
WP(C) NO. 28483 OF 2024
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3 THE COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE,
OFFICE OF THE COMMISSIONER OF CENTRAL TAX AND
CENTRAL EXCISE, THIRUVANANTHAPURAM COMMISSIONERATE,
GST BHAVAN, PRESS CLUB ROAD, STATUE,
THIRUVANANTHAPURAM, PIN - 695001.
4 THE FEDERAL BANK LIMITED,
OPPOSITE EDAMON LP SCHOOL, EDAMON P.O., KOLLAM,
REPRESENTED BY ITS - BRANCH MANAGER, PIN - 691307.
BY SRI. V.GIRISHKUMAR, SC
SRI.PAULOCHAN ANTONY
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
07.11.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
The petitioner had made a voluntary disclosure and applied for
settlement of dues under the provisions of the Finance Act, 1994 for the
financial years 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18
under the provisions of the Sabka Vishwas (Legacy Dispute Resolution)
Scheme [in short 'SVLDR Scheme'] . The declaration submitted by the
petitioner under the SVLDR Scheme was accepted and Ext.P3 statement
was issued permitting the petitioner to settle the service tax liability for
the period from 01.04.2012 to 30.06.2017 by paying a sum of
Rs.11,36,261/-. However, the petitioner failed to pay the amount within
the time specified. According to the petitioner, this was on account of the
fact that the business of the petitioner was affected due to the Covid-19
pandemic. The petitioner has approached this Court by filing this writ
petition on account of the fact that an order of assessment has now been
issued under the provisions of the Finance Act, 1994 (Ext.P7) on the
basis that the petitioner had voluntarily disclosed his liability. According
to the petitioner, the proceedings for assessment were barred by
limitation. A debit freeze has also been placed on the bank account of the
petitioner as per Ext.P9 for recovery of the amounts assessed under
Ext.P7. The learned counsel appearing for the petitioner submits that the
Madras High Court in N.S.Rathinam and Sons Pvt. Ltd. v. Assistant
WP(C) NO. 28483 OF 2024
2024:KER:82826
Commissioner of GST and Central Excise, Dindigul [(2023) 8 Centax
232 (Mad.)] has taken the view that where the amount payable under the
SVLDR Scheme has not been paid within the time specified in the
statement issued under the Scheme, the assessee can be permitted to pay
the amount beyond the date specified if the assessee is also willing to pay
interest at the rate of 15%.
2. Considering the submission made by the learned
counsel for the petitioner, this Court on 01.11.2024 passed the following
order:-
"Having heard the learned counsel for the petitioner
and the learned Standing Counsel appearing for the Department
at length and having perused the judgment of the Madras High
Court in N.S.Rathinam and Sons Pvt. Ltd. v. Assistant
Commissioner of GST and Central Excise, Dindigul [(2023) 8
Centax 232 (Mad.)], I am of the view that the petitioner can also
be permitted to avail the benefit of the Amnesty Scheme [Sabka
Vishwas (Legacy Dispute Resolution) Scheme].
The learned Standing Counsel appearing for the
Department seeks time to get instructions as to what will be the
amount payable by the petitioner if the directions issued by the
Madras High Court in N.S.Rathinam and Sons Pvt. Ltd.(supra)
is applied to the facts of the present case also.
Post on 06.11.2024"
3. The learned Standing Counsel appearing for the
respondents would submit that the amount of interest payable by the
petitioner on the sum payable by the petitioner in terms of Ext.P3
WP(C) NO. 28483 OF 2024
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statement issued under the SVLDR Scheme till 01.11.2024 will be
Rs.7,39,659/-.
4. The learned counsel appearing for the petitioner
submits that the petitioner is willing to remit the amount specified in
Ext.P3 together with interest as aforesaid.
5. In view of the above, this writ petition will stand
disposed of directing that the petitioner will be permitted to pay the
amounts stated in Ext.P3 along with interest till the date of payment in
the following manner:-
(1)The petitioner shall pay the principal amount stated in Ext.P3
on or before 15.11.2024. In order to enable the petitioner to do
so, the debit freeze on the account of the petitioner maintained
with the 4th respondent Bank shall be lifted after the principal
amount specified in Ext.P3 is remitted to the account of the 1 st
respondent by debiting the account in question;
(2) The petitioner shall pay interest of Rs.7,39,659/- on or
before 31.12.2024.
If the petitioner complies with the aforesaid directions, the case of the
petitioner shall be treated as settled in terms of Ext.P3.
Sd/-
GOPINATH P.
JUDGE
DK
WP(C) NO. 28483 OF 2024
2024:KER:82826
APPENDIX OF WP(C) 28483/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE RELEVANT EXTRACT OF
FINANCE ACT, 2019 DATED 1.8.2019
Exhibit P2 A TRUE COPY OF THE APPLICATION SUBMITTED
BY THE PETITIONER IN FORM SVLDRS 1 DATED
15.1.2020
Exhibit P3 A TRUE COPY OF THE STATEMENT ISSUED BY THE
DESIGNATED COMMITTEE IS FORM SVLDRS 3
DATED 24.2.2020
Exhibit P4 A TRUE COPY OF THE SHOW CAUSE NOTICE
ISSUED BY THE 1ST RESPONDENT DATED
30.12.2020
Exhibit P5 A TRUE COPY OF THE AUTHORISATION ISSUED BY
THE PETITIONER TO HIS CHARTERED ACCOUNTANT
DATED 3.2.2022
Exhibit P6 A TRUE COPY OF THE RECORD OF THE PERSONAL
HEARING ISSUED BY THE 1ST RESPONDENT DATED
3.2.2022
Exhibit P7 A TRUE COPY OF THE ASSESSMENT ORDER ISSUED
BY THE 1ST RESPONDENT DATED 10.2.2022
Exhibit P8 A TRUE COPY OF THE LETTER ISSUED BY THE
4TH RESPONDENT DATED 30.7.2024
Exhibit P9 A TRUE COPY OF THE REVENUE RECOVERY NOTICE
ISSUED BY THE 1ST RESPONDENT TO THE 4TH
RESPONDENT BANK DATED 29.7.2024
Exhibit P10 A TRUE COPY OF THE JUDGMENT OF THE HON'BLE
HIGH COURT OF DELHI IN W.P.(C) 8675/2017
DATED 17.12.2019
