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2021 (11) TMI 463 - HC - Service TaxSVLDRS - Clubbing of two SCN - whether the excess disputed amount deposited by the petitioner by way of pre-deposit in respect of the first show-cause notice (SCN-1) can be adjusted towards the amount payable by the petitioner in respect of the second show-cause notice (SCN-2) under the SVLDRS. - seeking issuance of discharge certificate pertaining to the petitioner without insisting on any further payments - HELD THAT:- The SVLDRS was promulgated with the object of providing amnesty and dispute resolution in order to unlock legacy cases locked up in litigation at various forums by providing relief/benefit to the assessee. This underlying object of the scheme has been noticed and reiterated by this Court as well as other Courts as can be seen in the various decisions. It is also relevant to state that the SVLDRS is a beneficial scheme and has to be construed and interpreted liberally keeping in mind the aims and objectives of the schemes. In the facts of the instant case, the material on record clearly indicates that both the show-cause notices and both the appeals arising therefrom, which were pending adjudication at the time of promulgation of the SVLDRS arose between the very same petitioner and the respondents and were in respect of the same subject matter i.e., jaggery powder, the only difference being that the show-cause notices and the proceedings were relatable to two different time periods - keeping in mind the aims and objectives of the SVLDRS, which is to provide amnesty and resolution of disputes, in the facts of the instant case, the disputes between the petitioner and respondents having been undisputedly brought under the SVLDRS, both the disputes deserve to be resolved by making mutual adjustment with regard to the disputed pre-deposit made by the petitioner by consolidating and clubbing both the disputes, particularly when deduction of any amount paid by the petitioner declarant was liable to be made under Section 124 of the SVLDRS. The contention of the respondents that two separate show-cause notices cannot be clubbed together for the purpose of SVLDRS cannot be accepted especially when the respondents have given the benefits/relief under the SVLDRS in favour of the petitioner in respect of both the show-cause notices. Respondent Nos.3 and 4 are directed to adjust the excess amount deposited by the petitioner towards the amount demanded from the petitioner in Annexure-H dated 13.12.2019 and issue a discharge certificate in favour of the petitioner in respect of the second case of the petitioner for the period 16.09.2015 to 30.06.2015 and take necessary steps in this regard as expeditiously as possible - Petition allowed.
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