Bombay High Court allows actor Arjun Rampal to avail indirect tax benefits under Sabka Vishwas scheme

The Bombay High Court recently granted relief to Bollywood actor and model Arjun Rampal by allowing him to avail the benefits under the now expired Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR scheme) and pay his tax dues for financial year 2016-17. .The scheme which was introduced by the Central government on September 1, 2019 to bring an end to pending litigation under the indirect tax regime, was valid till December 31, 2019.A division bench of Justices Nitin Jamdar and Abhay Ahuja observed that the SVLDR scheme was brought to put an end to legacy disputes in indirect tax matters which would benefit the tax payers as well assessees and revenue. “The tax payers would have the benefit of ending the legacy disputes with the revenue authorities and the authorities would in turn unlock the revenues that were locked up in such disputes,” the bench reasoned. .Rampal availed the scheme on December 30, 2019 declaring ₹9,16,203 as tax dues. On February 23, 2020, a form was issued by the Central Board of Indirect Taxes and Customs (CBIC) directing Rampal to pay ₹2,74,860 to avail the benefit under the scheme. He was was granted a mandate form (challan) from the CBIC portal. Due to nationwide lockdown, Rampal could not visit the bank to make the payment. Thereafter, reminder letters were sent by the Superintendent of Investigation team, Central goods and services tax, informing Rampal that due date for payment of tax dues had been extended to June 30, 2020. Rampal tried to regenerate the challan from the CBIC portal to make the payment and even transferred money via RTGS which was reversed and refunded to Rampal. .Thereafter, Rampal tried to re-generate challans and contact the CGST authorities, which were unsuccessful.On September 14, 2020, the CGST officers informed Rampal that date for payment was no longer extended by Central government. Rampal was then informed that his payment had been reversed as his challan had expired. Rampal then moved the High Court raising grievance that for no fault of his, he was being denied the benefit of the scheme..The Court concluded that Rampal could not be deprived of the benefit of the SVLDR Scheme just for a technical reason that amount paid before June 30, 2020 was reversed due to expiry of challan which was not Rampal’s fault.The Court, therefore, allowed the petition and directed the authorities to permit Rampal to pay amount of ₹2,74,860 under the SVLDR Scheme. The Bench also directed the authorities to issue the necessary discharge certificate under the said scheme..Advocates Bharat Raichandani and Rishab Jain briefed by UBR Legal appeared for Rampal. Advocates Siddharth Chandrashekar and Kush Lahankar appeared for respondent authorities.