M/S Siddharth Infra Power PVT. LTD. vs. Designated Committee

Held

The Court observed that the writ applicant should take up the issue with the Chairman, CBIC, by filing an appropriate application or representation. The learned counsel for the applicant expressed an inclination to deposit Rs. 15 lakh with the Registry of the Court to demonstrate bona fide, but the Court was of the view that the Registry should not be involved in such matters. The Court directed that the Chairman, CBIC, should look into the issue at the earliest and take an appropriate decision. The writ application was disposed of with liberty to the writ applicant to approach the Court again in case of future difficulties. No specific finding was given on the entitlement to an extension of time, as the matter was directed to be resolved at the administrative level.

Facts

The writ applicant, M/s Siddharth Infra Power Pvt. Ltd., filed a writ petition before the Gujarat High Court challenging letters dated October 28, 2020, and September 30, 2020, issued by the Superintendent (Arrears), CGST and Central Excise, Vadodara-I. These letters pertained to demands related to the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The applicant sought an extension of time to make the payment under SVLDRS-3, dated January 3, 2020, citing difficulties caused by the COVID-19 pandemic. The applicant had previously requested an extension until September 30, 2020, which was declined. The Central Board of Indirect Taxes and Customs (CBIC) had issued instructions on July 14, 2020, to Chief Commissioners regarding SVLDRS declarants willing to pay dues, indicating a possibility of extending timelines.

Key Issues

1. Whether the writ applicant is entitled to an extension of time to make the payment under the SVLDRS-3 dated January 3, 2020, considering the prevailing COVID-19 pandemic and the instructions issued by the CBIC on July 14, 2020. The petitioner argued that the COVID-19 pandemic prevented them from making the necessary payment under the SVLDRS-3. They relied on the CBIC's notification dated June 27, 2020, which extended time limits for compliance under Customs, Excise, and Service Tax, and the subsequent instructions dated July 14, 2020, which encouraged contacting major declarants unable to pay by June 30, 2020, and likely to pay later. The petitioner sought directions to the respondents not to initiate coercive recovery proceedings and to grant an extension for payment. The revenue or State did not record any specific arguments in the judgment.