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2020 (12) TMI 234 - HC - Service TaxTax Relief as per Section 124 (1) (c) of Finance Act - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - (SVLDRS) - whether as per Section 124(2) of the Act, relief should be calculated after adjustment of tax already deposited or before adjustment of tax already deposited? - HELD THAT:- The case on hand falls under Section 123(e) of the Act. It means “Where an amount in arrears relating to the declarant is due, the amount in arrears”. The petitioner had already paid a sum of ₹ 3,59,73,729/-. The balance amount originally payable by the petitioner was only ₹ 1,51,17,635/-. That alone can be called as the amount in arrears. The petitioner's counsel would contend that the amount already paid should be considered as a deposit and it should be deducted only after relief is calculated on the entire tax liability of ₹ 5,10,91,364/-. It is true that the provision talks of “deposit or pre-deposit”. That expression can only refer to those payments made by the declarant even while he is still contesting his liability. If an amount has already been deposited in respect of the duty without demur, then it cannot be called as deposit or pre-deposit. Appropriation had already taken place. In fact, the petitioner's grievance before the original authority was that without taking into account the payment of ₹ 3,59,73,729/-, the order had been passed. The original authority had in fact directed the recovery officers to take into account the said claim. Having cleared his liability in part, now for the purpose of availing the benefit under the scheme, the petitioner cannot turn around and claim that what was paid by him was only “deposit” and not the tax amount. Petition dismissed.
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