SVLDRS discharge certificate cannot be denied for delayed payment of tax which was recredited due to a technical glitch

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.

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