T. D. Shibu Vs Commissioner of Customs (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi partly allowed the appeal challenging the confirmation of service tax, interest and penalty after the appellant failed to make payment within the prescribed time under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The appellant, a registered provider of Works Contract Service, had voluntarily disclosed a service tax liability of Rs. 2,90,031 under the SVLDRS on 31 December 2019. The declaration was accepted, and Form SVLDRS-3 was issued on 30 January 2020 requiring payment within 30 days. Although the due date was extended to 30 June 2020 because of the COVID-19 pandemic, the appellant made the payment only in October 2020. As a result, the Department treated the declaration as lapsed under Section 127(5) of the Scheme and issued a show cause notice demanding service tax, interest and penalties, which was upheld by the adjudicating authority and the Commissioner (Appeals).
Before the Tribunal, the appellant argued that payment had been initiated with the banker before the stipulated date but could not be credited in time due to the COVID-19 pandemic. It was contended that rejection of the SVLDRS benefit on the ground of delayed payment defeated the objective of the amnesty scheme. The Department maintained that the Scheme was time-bound, that payment had not been made within the extended deadline, and that the benefit automatically lapsed under Section 127(5).
