2023 (1) TMI 452 - HC - Central Excise

Denial of the benefit of the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDR Scheme) - rejection of applications on the ground ineligibility observing that in terms of Section 125(1)(h) of the Finance Act, 2019, the product falling under the Fourth Schedule to the CE Act is not eligible for this Scheme - invocation of Section 125(1)(h) of the Finance Act (No.2) Act of 2019 - HELD THAT:- The above interpretation placed by the Department on Section 125(1)(h) of the Finance Act, 2019 appears not to be correct. No doubt that the Petitioner’s product (Process Oil) falls under the Fourth Schedule to the CE Act but as far as the rate of duty is concerned - there is no question of the Petitioner’s product being outside the purview of the SVLDR Scheme read with the Fourth Schedule to the CE Act. The Court, therefore, rejects the plea of the Department that the Petitioner would be ineligible for the benefit of the SVLDR Scheme.

The Court quashes the order dated 16^th December, 2019 and other similar orders issued by the Department (all of which have been assailed by the Petitioner in the writ petitions) rejecting the SVLDR applications of the Petitioner since they are based on an erroneous interpretation of not only the SVLDR Scheme but also Section 125(1)(h) of the Finance Act.

A direction is issued to the Department to process the Petitioner’s applications for amnesty under the SVLDR Scheme and after hearing the Petitioner on a date to be informed to the Petitioner at least one week in advance and to pass a reasoned order on the Petitioner’s applications under the said SVLDR Scheme within a period of four weeks thereafter - the writ petitions are disposed off.