Sitec Labs Limited Vs Union of India (Bombay High Court)
Technical glitch in Payment: HC allows declarant to make payment and avail benefit of SVLDR scheme
In a significant legal development, the Bombay High Court ruled on a case involving Sitec Labs Limited versus Union of India, concerning the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court’s decision centered around a technical issue hindering the petitioner from completing the scheme’s payment requirements within the stipulated timeframe.
Sitec Labs, engaged in technical testing services, faced a demand notice following an Order-In-Original (O-I-O) in 2017. The company opted for the SVLDR scheme in 2019 to resolve the dispute, subsequently withdrawing their writ petition challenging the O-I-O.
The crux of the case revolved around Form SVLDRS-3 issued to Sitec Labs on 25th February 2020, demanding payment of Rs. 25,68,362.50 within 30 days. Despite generating a payment challan promptly on 26th March 2020, Sitec Labs encountered a technical glitch preventing actual payment through the portal. This issue led to an extension until 30th June 2020, granted by legislative amendment.
However, despite efforts to rectify the situation, Sitec Labs received communication from the authorities on 9th November 2020, stating their application couldn’t proceed due to non-payment. The petitioner contended that the glitch was beyond their control, emphasizing their compliance efforts and the scheme’s objective to reduce litigation.
