The court allowed payment extensions under the Sabka Vishwas scheme due to pandemic disruptions, emphasizing reasonableness in statutory compliance.

ORDER

Heard Mr.T.R.Ramesh, learned counsel for the Petitioner and Mr.Santhanaraman, learned Senior Standing Counsel for the Respondents.

2. The present writ petition has been filed by the Petitioner praying to quash the impugned Order-in-Original No.04/2021 dated 29.09.2021 passed by the 2^nd Respondent and to consequently, direct the 1^st Respondent to issue Discharge Certificate to the Petitioner.

3. The facts on record indicate that the Petitioner had not made payment of Central Excise Duty to the tune of Rs.7,62,719/- which culminated in the issuance of Show Cause Notice No.03/2019 dated 11.02.2019, demanding Central Excise Duty to the tune of Rs.7,62,719/- with interest from the Petitioner and proposing to impose penalty under Section 11AC of the Central Excise Act, 1944. After issuance of the aforesaid Show Cause Notice, the Petitioner vide Form SVLDRS – 1 applied for the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (for brevity, “SVLDRS, 2019”) to the 1^st Respondent on 31.12.2019.

4. After perusing the Petitioner's Application under SVLDRS, 2019, the 1^st Respondent had issued Form SVLDRS-3 dated 29.02.2020 to the Petitioner, determining the further amount payable by the Petitioner for Central Excise Duty as Rs.78,816/- after noting the credit of Rs.1,50,000/-

which had already deposited by the Petitioner.

5. As per Rule 7 of SVLDRS, 2019, the declarant under the said scheme is required to electronically pay the amount as indicated in Form SVLDRS-3 issued by the 1^st Respondent Designated Committee, within a period of 30 days from the date of issuance of the Form SVLDRS-3 by the 1^st Respondent Designated Committee. Thus, the expiry date for payment of the Central Excise Duty of the aforesaid amount of Rs.78,816/- by the Petitioner is 30.03.2020

6. At the time of issuance of Form SVLDRS-3 i.e., on 29.02.2020 by the 1^st Respondent, the country was under lock-down due to the outbreak of Covid-19 Pandemic. Hence, the Petitioner had paid the said amount of Rs.78,816/- only on 10.10.2020

7. Subsequently, by the impugned Order-in-Original No.04/2021 dated 29.09.2021, the 2^nd Respondent confirmed the proposal contained in the Show Cause Notice No.03/2019 dated 11.02.2019 issued to the Petitioner.

8. The payment of Central Excise Duty by the Petitioner is beyond the statutory period as stipulated under Rule 7 of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. However, during the period of Covid- 19 Pandemic, the Central Board of Indirect Taxes vide Notification No.1/2020 – CE (NT), extended the time for making such payment upto

30.06.2020

9. Subsequently, by virtue of the Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020 (for brevity, “TOLA”) dated 29.09.2020, the time limit for payment of tax under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was further extended upto 31.12.2020

10. That apart, as per Chapter – VII of TOLA, Section 127 of the Finance (No.2) Act, 2019 was amended as follows:

“8. In section 127 of the Finance (No.2) Act, 2019,—

(i) in sub-section (1), for the words "within a period of sixty days from the date of receipt of the said declaration", the words, figures and letters "on or before the 31st day of May, 2020" shall be substituted;

(ii) in sub-section (2), for the words "within thirty days of the date of receipt of the declaration", the words, figures and letters "on or before the 1st day of May, 2020" shall be substituted;

(iii) in sub-section (4), for the words "within a period of sixty days from the date of receipt of the declaration", the words, figures and letters "on or before the 31st day of May, 2020" shall be substituted;

(iv) in sub-section (5), for the words "within a period of thirty days from the date of issue of such statement", the wo