Docland Services LTD vs. Commissioner Of Central Goods And Services Tax Delhi East

Facts

The petitioner, Docland Services Ltd., filed a writ petition challenging the inability to avail benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 due to a technical glitch. The petitioner had filed an application under the Scheme on December 24, 2019, concerning a show cause notice dated September 7, 2018, issued by the Commissioner of Central Goods and Services Tax, Delhi East. This notice demanded service tax dues amounting to Rs. 94,82,291/- for the period 2012-2013 to 2016-2017. The petitioner claimed that while the Scheme required payment of 50% of the demanded tax (Rs. 47,41,146/-), they could not complete the process. They received an email on February 19, 2020, purportedly with the prescribed form SVLDRS-3, but it was not attached. Subsequently, on November 2, 2020, the petitioner made a representation, acknowledging the payment deadline of June 30, 2020, had passed, and expressed willingness to pay the dues with interest, attributing the delay to the COVID-19 pandemic. The respondent argued that the representation was not addressed to the correct Commissionerate and that the deadline had passed, precluding the petitioner from availing the Scheme's benefits.

Held

The Court held that the writ petition could be treated as a representation and directed the concerned Commissionerate to consider and dispose of it. Specifically, the Delhi East Commissionerate, which issued the show cause notice, was ordered to consider the petitioner's submission that exceptions have been made in certain cases, allowing benefits under the Scheme even after the deadline of June 30, 2020, had passed. The Court directed the concerned officer to pass an order on the merits of the case after providing a hearing to the petitioner's authorized representative. The officer was given eight weeks from the receipt of the order to pass the decision. The Court did not explicitly decide on the eligibility of the petitioner under the Scheme but remanded the matter for consideration of the petitioner's plea for an exception.

Key Issues

1. Whether the petitioner can be permitted to avail the benefits of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, despite the expiry of the prescribed deadline, considering the alleged technical glitch and the impact of the COVID-19 pandemic? (Question of mixed law and fact, turning on the interpretation and application of the Sabka Vishwas Scheme and any relevant circulars or exceptions). Petitioner's Arguments: The petitioner contended that a technical glitch prevented them from completing the necessary steps for the Scheme. They also argued that exceptions have been made in certain cases, supported by specific circulars issued by the respondents, allowing individuals to avail the Scheme's benefits even after the deadline. The petitioner was willing to pay the determined amount along with interest. Respondent's Arguments: The respondent argued that the petitioner's representation was not addressed to the correct Commissionerate, as the show cause notice originated from the Delhi East Commissionerate. Furthermore, the respondent contended that since the deadline for the Scheme had expired, the petitioner was no longer eligible to avail its benefits.