Bombay High Court Allows Arjun Rampal to Avail Benefits under Expired SVLDR Scheme

Recently, the Bombay High Court 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 SVLDR scheme was introduced by the Central government on September 1, 2019 to bring an end to pending litigation under the indirect tax regime. It was valid till December 31, 2019. 

A division bench of Justices Nitin Jamdar and Abhay Ahuja observed that the 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 bench reasoned that 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.

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.

Rampal availed the scheme on December 30, 2019 declaring ₹9,16,203 as tax dues and was issued a mandate form (challan) from the CBIC portal. However, due to the nationwide lockdown, he 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.

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.

The Bombay High Court’s decision to grant relief to 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 is a welcome move. 

The SVLDR scheme was introduced by the Central government to bring an end to pending litigation under the indirect tax regime and benefit the tax payers as well assessees and revenue.