Geo Foundations And Structures Pvt. Ltd Vs Joint Commissioner of Central Tax & Central Excise (Kerala High Court)
The Kerala High Court dealt with a writ petition filed by a works contractor seeking issuance of a discharge certificate under the Sabka Viswas (Legacy Disputes Resolution) Scheme, 2019. The dispute related to service tax assessment for the year 2006–07 under the Finance Act, 1994. An order-in-original had determined the tax liability, which the petitioner opted to settle under the 2019 Scheme. The petitioner paid the entire amount payable within the stipulated time, evidenced by a challan dated 30 June 2020, which was the last permissible date for payment.
Despite full payment, the competent authority failed to issue the discharge certificate in Form SVLDRS-4, prompting the petitioner to approach the Court. During the hearing, the revenue authorities admitted that although the payment had been made, the discharge certificate was not issued. They contended that issuance was not possible because the electronic portal created for the Scheme was no longer operational.
The Court rejected this explanation, holding that once the authorities admitted that the petitioner had remitted the entire amount payable under the Scheme within time, they were bound to issue a discharge certificate evidencing settlement and exonerating the petitioner from further liability arising from the original order. The non-functioning of the online portal could not be used as a justification to deny the statutory benefit. The Court observed that if the portal was unavailable, it was the obligation of the authorities to issue a discharge certificate manually.
