Madras High Court
M/S.N.S.Rathinam And Sons Pvt Ltd vs The Assistant Commissioner Of Gst ... on 5 June, 2023
W.P.(MD) No.29269 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 05.06.2023
CORAM
THE HONOURABLE Ms.JUSTICE P.T.ASHA
W.P.(MD) No.29269 of 2022
and
W.M.P.(MD) No.23231 of 2022
M/S.N.S.Rathinam and Sons Pvt Ltd.,
represented by its Managing Director,
R.Chandrasekaran,
S.No.2613/2A2-NH-7,
Dindigul-Karur Road,
Agaram,
Dindigul 624 709. ... Petitioner
/vs./
1.The Assistant Commissioner of GST and Central Excise,
Dindigul I Division, 68,
Nehruji Nagar,
R.M.Colony Road,
Dindigul 624 001.
2.The Commissioner of GST and Central Excise,
Designated Committee-SVLDRS 2019 scheme,
No.4, Lal Bahadur Shastri Road,
Bibikulam,
Madurai 625 002.
1/8
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W.P.(MD) No.29269 of 2022
3.The Superintendent of GST and Central Excise,
Vedasandur II Range,
No.5/28, N.G.O.Colony,
Dindigul 624 005. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for
issuance of Writ of Certiorarified Mandamus, calling for the records relating to
the Proceedings in C.No.IV/16/16/2020 dated 30.11.2022 of the 1st respondent,
and quash the same consequently direct the 2nd respondent to accept Application
in SVLDRS 3 No L160120SV300425 dated 16.01.2020 by extending the time
limit for making balance payment under SVLDRS 2019, and accept the payment
already made in respect of tax dues quantified.
For Petitioner : S.M.S.Krishnakumar
For Respondents : Mr.N.Dilip Kumar
Senior Panel Counsel
ORDER
The above writ petition is filed for the issue of a Writ of Certiorarified
Mandamus calling for the records in C.No.IV/16/16/2020 dated 30.11.2022 of the
first respondent, quashing the same and directing the second respondent to accept
the application in SVLDRS 3 No L160120SV300425 dated 16.01.2020 by
extending the time limit for making balance payment under SVLDRS 2019 and
accepting the payment already made in respect of tax dues quantified.
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W.P.(MD) No.29269 of 2022
2.The facts in brief are as follows:-
3.The petitioner is engaged in providing storage and warehousing services.
They had been registered earlier with the service tax regime under the head of
'Storage and Warehousing Services'. With the introduction of the GST, they had
migrated to the new regime and has been allotted a new registration number. On
11.10.2019, they had been served with the order of the Joint Commissioner of
GST and Central Excise, Madurai, directing the petitioner to pay a sum of Rs.
69,08,453/- towards wrongly taken ineligible Cenvat credit and a sum of Rs.
16,00,666/- towards suppression of taxable value. Penalty of Rs.85,09,119/- under
Section 78 of the Finance Act r/w Rule 15 of the CENVAT Credit Rules, 2004,
was also imposed apart from the interest on the service tax amount demanded.
The petitioner would submit that although they had an appellate remedy, they
were unable to avail the same on account of the COVID-19 lock down and by
reason of the loss in business on account of demonetization etc.,
4.It is the further case of the petitioner that in the meantime, the Central
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W.P.(MD) No.29269 of 2022
Government had come forward with the scheme, called Sabkha Vishwas (Legacy
Dispute Resolution) Scheme, 2019 (herein after referred to as scheme) providing
total waiver of interest, penalty and fine and also allowing reduction in the
taxable amount. Under the scheme, for demands up to Rs.50,00,000/-, the tax
relief was 70% and for amounts over Rs.50,00,000/-, it was 50% on the tax
pending as on 30.06.2019. The petitioner availed the above scheme. On
24.12.2019, the petitioner had filed Form-SVLDRS-1 No.LD2412190000315 for
Rs.51,05,471/-. Thereafter, on 16.01.2020, the petitioner was issued with the
Form SVLDRS-3 No.L160120SV300425 by the then Designated Committee. The
petitioner came to know about the issue of Form SVLDRS-3 subsequently, as it
was uploaded much later.
5.The petitioner would submit that during the relevant period they have to
enter the web-portal of the respondents to make the payment only through an
authorized banker. Be that as it may, the petitioner was unable to adhere to the
schedule given under the scheme, which envisaged that the payment had to be
made within 30 days. This period was extended up to 30.06.2020 in the light of
the COVID-19 lock down. The petitioner would submit that on 29.09.2020, the
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W.P.(MD) No.29269 of 2022
third respondent had issued a letter directing the petitioner to pay the arrears. The
petitioner by letter dated 12.10.2020 requested time to remit the arrears. The
petitioner had remitted a sum of Rs.15,00,000/- on 24.06.2022 and Rs.21,27,000/-
on 03.10.2022, leaving the balance amount of Rs.14,78,471/- as per the amount
due under the scheme.
6.It is the further case of the petitioner that since the time had lapsed, the
third respondent had issued a letter dated 15.07.2022 directing the petitioner to
remit a sum of Rs.1,70,18,238/- along with interest, whereas under the scheme,
they were liable to pay only a sum of Rs.14,78,471/-. The petitioner had sent a
representation dated 21.11.2022 requesting the respondents to receive the
balance. However, by reply dated 30.11.2022, the respondents had expressed their
inability to receive the same since the time given under the scheme had long
expired. Therefore, left with no other alternative, the petitioner has come forward
with the present writ petition.
7.The respondents have filed their counter affidavit interalia contending
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W.P.(MD) No.29269 of 2022
that the scheme was for a limited period and the petitioner, who had opted for the
same, had not complied with the terms of the repayment provided under the
scheme. Therefore, it is their case that the petitioner have violated the provisions
of Section 127(5) of the Finance Act, 2019 and were not eligible to claim the
benefits under the scheme. The respondents had relied upon the judgments of
various Courts in this regard.
8.When the matter had come up on 24.04.2023, this Court had directed the
petitioner to pay the balance amount of Rs.14,78,471/-. In compliance of the
same, they have remitted the said amount by Challan dated 25.05.2023. By this
payment, the principal amount payable under the scheme has been paid by the
petitioner. The very nomenclature of the scheme would imply that the scheme has
been introduced for the development of all. The petitioner has set out the reasons
as to why he was unable to adhere to the schedule under the scheme. Therefore,
taking into account the facts of this case and considering the fact that the amount
due under the scheme has been paid, the interest of justice would be sub-served
directing the petitioner to pay the interest at the rate of 15% from 01.10.2020 till
the dates of respective payments. It is needless to state that the amounts paid
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W.P.(MD) No.29269 of 2022
prorata would be deducted for calculating the interest. The payment of the interest
would also ensure that the revenue is not prejudiced. On such payment, the
discharge certificate should be issued. The said exercise shall be completed
within a period of 3 weeks from the date of receipt of a copy of this order. This
order has been passed only taking into account the special facts of this case.
9.In the result, the Writ Petition is disposed of on the above lines. However,
there shall be no order as to costs. Consequently, connected Miscellaneous
Petition is closed.
Speaking : Yes / No 05.06.2023
NCC : Yes / No
Internet : Yes / No
Index : Yes / No
mm
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W.P.(MD) No.29269 of 2022
P.T.ASHA, J.
mm
W.P.(MD) No.29269 of 2022
05.06.2023
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