SK Likproof Private Limited Vs Union of India (Gujarat High Court)
The Hon’ble Gujarat High Court in M/s. SK Likproof Private Limited v. Union of India [R/Special Civil Application No. 20717 of 2022 dated February 9, 2023] has held that, when the deposit within the stipulated time period was made, technical glitch being the reason for the non-functioning of the bank’s software would not hold the assessee liable or accountable for non-payment. Further held that, the denial of the Revenue Department for considering the case and the later recovery of an amount of INR 7,68,675/- must be reverted. Directed the Revenue Department to refund the said sum and issue discharge certificate.
Facts:
M/s. SK Likproof Private Limited (“the Petitioner”) is engaged in the business of manpower recruitment agency, maintenance of repair service etc. at Vadodara. The Revenue Department (“the Respondent”) passed the Order- in-Original on March 13, 2019 (“the OIO”), directing the Petitioner to pay Service Tax amounting to INR 3,60,502/- under Section 73 of the Finance Act, 1994 (“the Finance Act”) along with the applicable interest and penalty. An appeal was filed before the Appellate Authority wherein the final hearing was scheduled on July 9, 2019. Meanwhile, SVLDRS was notified through the Finance Act and therefore, the Petitioner had filed an application in Form SVLDRS -1.
The Petitioner received a notice under Section 127 of the Finance Act on January 21, 2020 wherein, it was asked to submit the documents w.r.t. final hearing of appeal. On February 11, 2020, the Petitioner was intimated that the personal hearing was scheduled on February 14, 2020 and subsequently on February 12, 2020, the Petitioner was asked to pay the amount of INR 81,050.60/- for full and final settlement of tax dues under the Finance Act and the Mandate form was also generated for the same.
After six days of the issuance of the Form SVLDRS 03, the payment of INR 81,051/- was made through the cash credit account of the Petitioner however, the discharge certificate in Form SVLDRS-4 was not received and the amount which had been duly debited was re-credited in the account of the Petitioner. Thereafter, the Petitioner once again made the payment of Service Tax amounting to INR 81,051/- after the due date had elapsed. Thus, the payment was made twice due to technical glitch but the discharge certificate was still not issued. Further, on March 14, 2022, the notice was issued by the Respondent under Section 79(1)(c) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) in Form GST DRC-13 wherein bank was directed to pay liabilities in compliance with Section 79(1)(c) of the CGST Act and the payment of INR 7,68,675/- was made.
Issue:
Whether the Petitioner is entitled to refund of Service Tax amounting to INR 7,68,675/- which was paid by it due to the coercive action of the Respondent along with interest thereof?
Held:
The Hon’ble Ahmedabad High Court in R/Special Civil Application No. 20717 of 2022 held as under:
