Directorate General of GST Intelligence (DGGI) & Anr. Vs SEW Infrastructure Limited & Anr. (Supreme Court of India)
The case involves a dispute regarding the legality of adjusting income tax refunds against service tax dues and the obligations of authorities under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS).
Before the Supreme Court of India, the Special Leave Petition filed by the revenue was dismissed on two grounds: (i) delay of 544 days in filing the petition, and (ii) the matter having become infructuous as the impugned High Court order had already been complied with. The Court declined to condone the delay and dismissed the petition accordingly.
The underlying dispute was adjudicated by the Telangana High Court. The petitioner, engaged in infrastructure development, had filed its income tax return for Assessment Year 2018–19 and was found entitled to a refund of ₹34.65 crore (after adjustment). Simultaneously, the petitioner had service tax liabilities amounting to approximately ₹59.20 crore for the period October 2013 to June 2017.
A garnishee notice dated 22.03.2019 was issued by the GST authorities to the Income Tax Department directing it to remit the petitioner’s refund towards service tax dues. Meanwhile, the SVLDRS was introduced in 2019 as a one-time scheme for settlement of legacy disputes. The petitioner applied under the scheme, and its liability was reduced to ₹18.91 crore as per Form SVLDRS-3 dated 28.01.2020, payable by 30.06.2020.
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