HC rules that SVLDRS proceedings are quasi-judicial; payment made after deadline but within SC’s COVID extension is valid. Recovery proceedings quashed
Meetu Kumari | Nov 21, 2025 |
Kerala High Court Extends SVLDRS Payment Benefit by Applying Supreme Court’s COVID Limitation Orders
The petitioner faced service tax demands under two show cause notices issued by the Thrissur Division of the Central Excise Department. While the dispute was pending, the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) came into force. The petitioner submitted a declaration under the scheme and was permitted to settle the liability for Rs. 1,05,806, payable within the prescribed time, later extended by the Government up to 30.09.2020.
The petitioner remitted the amount on 16.11.2020, and the department accepted the payment. Despite this, a revenue recovery notice demanding Rs. 8,30,851 was issued in 2022. The petitioner objected, pointing out that the liability had already been settled under SVLDRS, but the department rejected the claim, asserting that payment was made beyond the permitted time. The petitioner then approached the High Court.
Main Issue: Whether a payment made under SVLDRS after the statutory cut-off date, but within the extended limitation period ordered by the Supreme Court due to the COVID-19 pandemic, is valid and entitles the declarant to a discharge certificate.
HC’s Ruling: The Court held that proceedings under SVLDRS, verification of declarations, determination of payable amounts, issuance of statements, and final issuance of discharge certificates are quasi-judicial in nature, not mere administrative acts. Since the Supreme Court had extended the limitation for all judicial and quasi-judicial proceedings from 15.03.2020 to 28.02.2022, this extended period necessarily applied to SVLDRS. The petitioner’s payment on 16 November 2020 thus fell within the extended limitation period.
The Court rejected the department’s reliance on decisions like Yashi Constructions, noting that those orders did not examine the impact of the Supreme Court’s COVID extension orders. The revenue recovery notice and the rejection order were quashed, and the department was directed to treat the payment as valid compliance under the scheme and issue an SVLDRS-4 discharge certificate within two months.
To Read Full Judgment, Download PDF Given Below
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