Case Note & Summary
The writ petition was filed under Articles 226 and 227 of the Constitution of India seeking quashing of an endorsement dated 13.01.2022 and a direction to accept payment of Rs.7,27,224.10 made on 30.09.2020 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The petitioner, a packaging company, had faced an order-in-original and its appeal was dismissed as time-barred on 08.02.2017. In W.P.No.20282/2017, the High Court condoned the delay and remitted the matter on 23.10.2017. Meanwhile, SVLDRS was notified, and the petitioner filed Form SVLDRS-1 on 28.11.2019. The respondents issued Form SVLDRS-3, requiring payment of Rs.7,27,224 by 28.02.2020, later extended to 30.06.2020 due to the Covid-19 pandemic. The petitioner made the payment on 30.09.2020. However, the respondents issued a letter on 11.11.2021 demanding compliance with the original order, followed by the impugned endorsement rejecting the payment as beyond time. The core legal issue was whether the payment made after 30.06.2020 could be accepted given the Supreme Court's suo motu orders extending limitation due to Covid-19. The petitioner argued that the Supreme Court's orders, starting from 23.03.2020, extended limitation for all proceedings, including time to make payments under SVLDRS, and relied on judgments of the Madras and Bombay High Courts. The respondents contended that the scheme's time limit was sacrosanct and payment after 30.06.2020 was invalid, citing contrary judgments. The court, after considering the material, held that the Supreme Court's direction in its limitation orders applied to the SVLDRS payment deadline, as the orders were binding on all courts, tribunals, and authorities. Consequently, the time stood extended, and the payment made on 30.09.2020 was within the permitted period. The impugned endorsement was quashed, and the respondents were directed to accept the payment and grant the benefit of the scheme. The judgment thus affirmed that the extension of limitation by the Supreme Court during the pandemic covered statutory schemes like SVLDRS.
Headnote
A) Taxation - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Extension of time for payment due to Covid-19 - Supreme Court suo motu orders extending limitation held applicable - The Supreme Court had taken suo motu cognizance and extended the period of limitation for all proceedings from 15.03.2020 till further orders, thus the time for making payment under SVLDRS stood extended beyond 30.06.2020. Payment made on 30.09.2020 was within the extended period, and the endorsement rejecting the payment was quashed with a direction to accept it and grant the scheme's benefit. Held that the respondents could not deny the benefit on the ground of delay when the Supreme Court's orders clearly covered the situation (Paras 9, 10).
Issue of Consideration
Whether payment of Rs.7,27,224.10 made on 30.09.2020 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, after the notified deadline of 30.06.2020, was valid in light of the Supreme Court's suo motu extension of limitation
Final Decision
Writ petition allowed; impugned endorsement dated 13.01.2022 quashed; respondents directed to accept the payment of Rs.7,27,224.10 made on 30.09.2020 and grant the benefit of SVLDRS to the petitioner
Law Points
- Supreme Court's suo motu orders extending limitation during COVID-19 apply to time limits for payment under SVLDRS
- payment made within extended period is valid
- benefit of scheme cannot be denied on ground of technical delay
Case Details
2024 LawText (KAR) (08) 23
Justice S.R.Krishna Kumar
For petitioner: Sri V. Raghuraman, Senior Counsel as Amicus Curiae, Sri Vinay N., Sri Manmohan P.N.; For respondents: Sri Jeevan J. Neeralgi (R1), Sri Akash B Shetty (R2-R4)
M/s Kivi Sansho Packaging Pvt. Ltd. (Presently M/s Shyamaprabha Smartpack Pvt. Ltd.)
Union of India, Department of Revenue, Central Board of Direct Taxes; Commissioner of Central Excise, Mangaluru; Additional Commissioner, Mangaluru; Superintendent, Central Excise and Central Tax (GST), Udupi
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India seeking to quash the endorsement rejecting payment under SVLDRS and for a direction to accept the payment
Remedy Sought
Petitioner sought quashing of endorsement dated 13.01.2022 and a direction to respondents to accept payment of Rs.7,27,224.10 made on 30.09.2020 under SVLDRS
Filing Reason
Petitioner made payment under SVLDRS after the notified deadline but within the period when the Supreme Court had extended limitation, and the respondents refused to accept it
Previous Decisions
Order-in-original passed against petitioner; appeal dismissed as time-barred on 08.02.2017; W.P.No.20282/2017 allowed by High Court on 23.10.2017 condoning delay and remitting the matter back to appellate authority; petitioner then filed application under SVLDRS
Issues
Whether the payment of Rs.7,27,224.10 made on 30.09.2020 under SVLDRS was within the permissible time period in light of the Supreme Court's suo motu orders extending limitation
Whether the endorsement dated 13.01.2022 rejecting the payment was valid and sustainable
Submissions/Arguments
Petitioner argued that the Supreme Court's orders extending limitation due to Covid-19 applied to the time limit for payment under SVLDRS, making the payment valid
Respondents contended that the payment was not made by the last date of 30.06.2020 as per the scheme notification, and hence the petitioner was not entitled to the benefit
Ratio Decidendi
The Supreme Court's suo motu orders extending the period of limitation due to Covid-19 apply to time limits for payment under statutory schemes like SVLDRS; payment made within the extended period is valid and the benefit of the scheme cannot be denied
Judgment Excerpts
This court has taken suo motu cognizance of the situation arising out of the challenge faced by the country on account of Covid-19 virus and resultant difficulties... it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f 15 th March 2020 till further orders.
In the light of the aforesaid orders passed by the Apex Court during Covid-19 period extending the period of limitation for all proceedings up to 28.02.2022, I am of the considered opinion that the petitioner is entitled to succeed in the present petition.
Procedural History
Order-in-original passed against petitioner; appeal dismissed as time-barred on 08.02.2017; petitioner filed W.P.No.20282/2017; High Court allowed the writ petition on 23.10.2017, condoning delay and remitting the matter; SVLDRS notified on 21.08.2020; petitioner filed Form SVLDRS-1 on 28.11.2019; respondents issued Form SVLDRS-3 requiring payment of Rs.7,27,224 by 28.02.2020, extended to 30.06.2020 due to Covid-19; petitioner paid on 30.09.2020; jurisdictional officer issued letter dated 11.11.2021 demanding compliance with original order; impugned endorsement dated 13.01.2022 rejecting the payment; writ petition filed.
Acts & Sections
- Constitution of India: Articles 226, 227
- Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019:
- Finance (No.2) Act, 2019: Section 127(5)
- Taxation and other Laws (Relaxation of Certain Provisions) Act, 2020:
