M/S. Neelanchal Manorama Developers PVT. vs. Designated Committee, Central GST And Customs

Facts

The Petitioner, M/s. Neelanchal Manorama Developers Pvt., engaged in the construction business and registered under Service Tax Division Berhampur, filed a writ petition before the High Court of Orissa. The petition sought permission to pay duty as per the sanctioned amount determined under the SVLDRS-3 (Sabka Vishwas Legacy Dispute Resolution Scheme) under the Amnesty scheme. This request was made in light of an order-in-original dated July 20, 2021, passed by the Assistant Commissioner, GST and Central Excise, Berhampur Division, which raised a demand of ₹18,35,926.00 for the period April 2013 to March 2017 due to non-payment of Service Tax. The Petitioner sought an extension of time to deposit the amount under the Amnesty scheme, relying on the Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020. However, it was noted that the extension of time under this Act was available only until December 30, 2020, and the Petitioner approached the Court with a delay of over a year.

Held

The Court did not decide the Petitioner's entitlement to an extension of time under the Amnesty scheme on merits. After arguing for some time and failing to convince the Court on the merits of the case, the counsel for the Petitioner sought permission to withdraw the writ petition. The Petitioner's intention in withdrawing was to enable their client to file a statutory appeal against the order-in-original dated July 21, 2021. Consequently, the Court dismissed the writ petition as withdrawn, granting the Petitioner the liberty to file their statutory appeal. No specific finding was made on the interpretation or application of the Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020, or the SVLDRS-3 scheme itself, as the matter was resolved by withdrawal. The issue of delay and laches was noted by the Court as a significant factor.

Key Issues

1. Whether the Petitioner is entitled to an extension of time to deposit the duty under the Amnesty scheme, specifically the SVLDRS-3, beyond the statutory deadline of December 30, 2020, relying on the Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020? Petitioner's Contention: The Petitioner argued for permission to make the payment of duty as per the sanctioned amount determined in SVLDRS-3, relying on the provisions of the Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020, which allows for general relaxation of time periods for depositing taxes. Revenue's Contention: The judgment does not explicitly record any arguments from the revenue or opposite parties regarding the Petitioner's entitlement to an extension. However, the Court's observation that the extension was available only till December 30, 2020, and the Petitioner approached the Court after a delay of more than a year, implies that the revenue would likely have contended against the Petitioner's claim based on the expired deadline and delay.