Case Law Details
Millenium Construction and Ors. Vs Designated Committee (Calcutta High Court)
Honorable Calcutta High Court, Circuit bench at Jalpaiguri, in case no. WPA 3120 of 2022, order dated 08.02.2023 passed by the Honorable Justice Bibek Chaudhuri , quashed the penalty imposed on the petitioner and also directed to repay the amount and directed to issue the discharge certificate in form SVLDRS-4 to the petitioner under the scheme of Sabkha Vishwas (Legacy Dispute Resolution) Scheme, 2019. The respondent’s failure to issue a discharge certificate in Form SVLDRS-4 in accordance with Section 127(8) of the Sabka Vishwas Scheme and under Rule 9 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019, as well as the recovery of a penalty of Rs.12,15,185 by attachment of the petitioners’ bank accounts on April 23, 2019, have incensed the petitioners. The petitioner, M/s Millenium Construction and Ors., was required to pay tax for the years 2011 through 2015, and a total of Rs. 7,83,780 in tax (including cess) was requested. The applicants paid taxes of Rs. 7,41,404 before the aforementioned order was passed. A balance of Rs. 42,376 was still owed. The petitioners requested relief for 60% of the remaining sum totalling Rs. 25,426 under the 2019 scheme and paid 40% of the admitted debts totalling Rs. 42376 or Rs. 16950 on June 30, 2020, by bank challan. Additionally, the respondents’ accounts were rewarded with the aforementioned sum on July 1st, 2020. The first respondent unilaterally recovered the Rs. 12,15,185 in fines for the petitioners’ purported one-day delay by attaching their bank accounts. The petitioner’s counsel claimed that after subtracting the statutory relief, the petitioners were required to deposit the tax by June 30, 2020, and that they did so in a proper manner on that day. However, on July 1st, 2020, the sum was credited to the responding authority’s account as a result of technical difficulties. The petitioners cannot be held accountable for this delay. The bench observed that for the failure of the bank in sending the money electronically by RTGS on 30th June, 2020, the petitioners cannot be held liable. The court instructed the respondents to accept the payment of tax in the amount of Rs. 16,951 dated June 30, 2020, as stated in the SVLDRS-3 statement and to issue a discharge certificate in the petitioners’ favour in the form of SVLDRS-4, settling all outstanding tax debt and providing consequential relief for the financial years 2011–2012 to 2014–2015 under the Sabka Vishwas Scheme. Furthermore, imposition and recovery of penalty was also quashed and directed to repay the said amount within four weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The petitioner No.1 is a partnership firm of which the petitioner Nos. 2 and 7 are the partners. The petitioners are aggrieved by the action of the respondent No.1 who did not issue discharge certificate in Form SVLDRS-4 under Section 127(8) of the scheme of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019and under Rule 9 of Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 within 30 days of the date of payment i.e., 30th June 2020 and recovery of penalty of a sum amounting to Rs.12,15,185/- by attachment of bank account of the petitioners on 23rd April, 2021.
It is the case of the petitioner that on 7th December, 2017 the respondent No.3 passed an order recording petitioners’ obligation to pay tax for the period 2011-2012, 2012-2013, 2013-2014, 2014-2015 and demanded tax (including cess) of Rs.7,83,780/-. The petitioners paid taxes of Rs. 7,41,404/-before passing of the aforesaid order. The balance amount of Rs.42,376/- remained due.
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