Shekhar Resorts Limited Vs Union of India & Ors (Supreme Court)
Date -5th January 2023
Sub-Whether delayed payment of service tax under Sabka Viswas Scheme due to reasons beyond control makes the declaration under the scheme infructuous?

An interesting question arose before Hon’ble Supreme Court of India when the appellant had filed an application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 within the due date as prescribed and the application was accepted and necessary forms were issued for payment of the tax due.However, due to the moratorium imposed under section 14 of the IBC law, the appellant couldn’t deposit the tax within the due date and when the appellant approached Commissioner CGST , it was told that as the payment was not made within the due date, the benefit of scheme could not be availed. The Allahabad high court also declined to interfere in a writ on the pretext that the designated committee under the scheme is not existing. On these facts, the Supreme Court considering the question whether, when it was impossible for the appellant to deposit the settlement amount in view of the bar and/or the restrictions under the IBC, the appellant can be punished for no fault of the appellant? The court relying on the decisions that no party shall be left remediless and whatever the grievance the parties had raised before the court of law, has to be examined on its own merits as held in Sunil Vasudeva and as observed and in the case of Calcutta Iron Merchants’ Association , no law would compel a person to do the impossible allowed the SLP and directed the Commissioner CGST to accept the application and allow the benefit of the scheme.

This judgement will be helpful in similar matters as well as for remedy under the Vivad se Vishwas scheme 2020.

Ramesh Patodia
06-01-2023