Case Law Details
RR Housing (India) Pvt. Ltd. Vs Designated Committee (SVLDRS) (Madras High Court)
Madras High Court held that provision of fixing time limit under Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDRS Scheme) is directory in nature and not mandatory. Accordingly, time limit for making payment of tax under SVLDRS Scheme is directory in nature.
Facts-
During Audit of Accounts of the petitioner, it was found that the petitioner had not paid service tax in respect of the residential flats constructed for the land owners in terms of a Joint Development Agreement and later, the petitioner paid a sum of Rs.44,29,032/- on 02.05.2019, which was not accepted by the Audit Officers, which culminated into issuance of a show cause notice proposing to demand Service Tax at Rs.70,82,343/- along with interest and penalty. The demand of service tax was confirmed by the Joint Commissioner of GST and Central Excise.
Meanwhile, a Scheme vis. Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDRS) was introduced to settle the disputes relating to legacy laws, viz., Service Tax, Central Excise Duty, etc., which are pending at various levels, by filing a declaration in Form SVLDRS-1 in the electronic portal. The petitioner opted to file a declaration under the SVLDRS Scheme in respect of the Service Tax dispute and settle the same and accordingly filed a declaration, upon which, the Designated Committee, after verifying form SVLDRS-1 filed by the petitioner, issued Form SVLDRS-3 on 13.2.2020.
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