Cradle Runways Pvt. Ltd. Vs Union of India (Bombay High Court)
The Bombay High Court recently ruled in Cradle Runways Pvt. Ltd. vs Union of India, addressing the denial of benefits under the Sabka Vishwas (Legal Dispute Resolution) Scheme, 2019 (SVLDRS). The petitioner, engaged in fabrication services, filed a declaration under the scheme for settling disputed service tax liabilities. The payment deadline under the scheme was extended to June 30, 2020, due to the COVID-19 pandemic. However, the petitioner paid on July 1, 2020, based on a challan indicating that date as valid, leading to the Revenue’s refusal to issue Form SVLDRS-4.
The High Court quashed the denial, emphasizing the scheme’s objective to resolve past disputes and noting the absence of malafide intent in the delay. The court held that procedural irregularities, such as a minor delay caused by technical glitches, should not obstruct substantive justice. It clarified that payment through either an SVLDRS challan or a service tax challan was acceptable as long as the Revenue received the funds. The court distinguished this case from Yashi Construction, where delays were due to financial constraints, and relied on precedents like Innovative Antares and Arjun Rampal.
Ultimately, the court directed the Revenue to issue Form SVLDRS-4 within four weeks, reaffirming that the scheme’s purpose and fairness must take precedence over technicalities.
