Messrs. Falcon Fighter Force Services PVT. LTD. vs. Union Of INDIA

Held

The Court acknowledged the peculiar nature of the litigation, where the dispute centered on whether to believe the petitioner's claim of a technical glitch. While recognizing the limitations of a writ court in resolving disputed questions of fact, the Court took notice of a Circular dated July 14, 2020, issued by the CBIC. This circular requested Chief Commissioners to survey major declarants who were unable to pay by June 30, 2020, due to difficulties but were likely to pay later. The Court was of the view that the petitioner should approach the Chairman, CBIC, with an appropriate application or representation. The Court directed that if the petitioner was ready and willing to deposit the requisite amount, the Chairman, CBIC, should look into the matter and try to resolve the dispute, as the revenue would benefit from the deposit. The Chairman was to consider the application at the earliest, take an appropriate decision, and communicate it in writing. The Court expressed its appreciation if a viable solution could be found.

Facts

The petitioner, M/s. Falcon Fighter Force Services Pvt. Ltd., sought to avail benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. They filed a declaration and were issued Form SVLDRS-3 on February 4, 2020, indicating a payable amount of Rs. 28,01,924.11. Rule 7 of the SVLDR Rules, 2019, stipulated payment within thirty days of the SVLDRS-3 issue date, i.e., by March 5, 2020. The petitioner claimed to have encountered a technical error on the ICEGATE portal while attempting to make the payment, despite generating a challan. The payment deadline was later extended to June 30, 2020, due to the COVID-19 pandemic. The petitioner contended they were unable to make the payment by the extended due date due to the persistent technical glitch. The respondents argued that the petitioner had ample opportunity and failed to make the payment, and there was no provision for relaxation due to technical glitches.

Key Issues

1. Whether the petitioner should be permitted to make payment under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, despite failing to do so within the prescribed timelines due to an alleged technical glitch on the ICEGATE portal? (Question of mixed law and fact, turning on Rule 7 of SVLDR Rules, 2019, and the interpretation of the Scheme's intent). Petitioner's Arguments: The petitioner argued that they were prevented from making the payment by the stipulated deadlines due to unavoidable technical errors on the ICEGATE portal. They relied on their representations to the SVLDRS Committee and the subsequent extension of deadlines by the Government due to the pandemic. They sought directions to allow physical or electronic payment and to quash a show cause notice issued by the Directorate General of GST Intelligence (DGGI). Revenue's Arguments: The respondents contended that the petitioner had sufficient opportunity to make the payment within the extended period until June 30, 2020. They stated that other applicants successfully made payments on the last date and that there was no provision in the law permitting relaxation for technical glitches. They argued that the demand for service tax was separate and should be contested on merits.