Substantive benefit under SVLDR scheme cannot be denied for technical reasons

Arjun Amarjeet Rampal Vs Union of India and Ors. (Bombay High Court)

The Bombay High court held that SVLDR scheme is a dispute resolution scheme. The substantive benefit under the scheme cannot be denied for technical reasons.

The petitioner is a film actor. An investigation was initiated alleging short payment of service tax. Statement of the petitioner was recorded. In the meantime, the petitioner applied under the SVLDR Scheme. Form 3 was issued. The Petitioner could not make the payment due to COVID -19 pandemic lockdown. The petitioner attempted to make the payment before 30.06.2020, however, the same was reversed by the bank due to expired challan. Hence, the petitioner approached the Hon’ble Court.

The Hon’ble Bombay High Court allowed the writ petition. It was held that SVLDR scheme is a dispute resolution scheme. The substantive benefit under the scheme cannot be denied for technical reasons. Follows judgment of the Hon’ble Supreme Court in Shekhar Hotels and distinguishes the Hon’ble Supreme Court judgment in Yashi Overseas.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

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