B-Earth And Spire INDIA PVT. LTD. vs. Union Of INDIA & Ors.

Held

The Court held that the ground on which the Petitioner's application was rejected, namely the non-filing of returns, did not survive. This was based on the Revenue's submission that while the returns were not visible on the GST portal at the time of application due to a technical glitch, they had indeed been filed by the Petitioner and were now reflected in the department's records. The Court found that a technical infraction on the part of the Respondent could not be a ground to deprive the Petitioner of the benefits of the SVLDR Scheme. Consequently, the Court set aside the impugned Statement dated February 28, 2020, and directed Respondent No. 4 to accept the Petitioner's Form SVLDRS-I and process it under Section 126 of the Finance Act, 2019. The Court also directed that the circulars dated September 25, 2019, and October 29, 2019, be considered during the processing, and if found eligible, a discharge certificate be issued with consequential benefits.

Facts

The Petitioner, B-Earth and Spire India Pvt. Ltd., engaged in housekeeping services, applied under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme). The Respondent No. 4 rejected the Petitioner's application via a Statement dated February 28, 2020, in Form SVLDRS-I, citing non-filing of returns for the period April 1, 2016, to September 30, 2016. The Petitioner received an SMS on the same date informing them of the rejection. The Petitioner contended that they had indeed filed their return for the relevant period on July 12, 2017, and this fact was overlooked, leading to the denial of benefits under the SVLDR Scheme.

Key Issues

1. Whether the rejection of the Petitioner's application under the SVLDR Scheme, based on the alleged non-filing of returns for the period April 1, 2016, to September 30, 2016, was valid, particularly in light of the Petitioner's claim of having filed the return on July 12, 2017. (Question of mixed law and fact, turning on the interpretation of the SVLDR Scheme and the factual status of return filing). Petitioner's Contention: The Petitioner argued that the rejection was baseless as the return for the relevant period was filed on July 12, 2017, and this fact was overlooked by the Respondents. They relied on Circular No. 1072/05/2019-CX dated September 25, 2019, and Circular No. 1073/06/2019.CX dated October 29, 2019, to support their eligibility for the scheme's benefits. Revenue's Contention: The Revenue initially sought time to verify the filing of the return. Subsequently, on instructions, they submitted that the Petitioner's returns were not visible on the GST portal at the time of application submission due to a technical glitch, but acknowledged that the returns had been filed and were now reflected in the department's records.