2024 (1) TMI 1462 - SC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - quantification of tax dues - HELD THAT - The judgment of the High Court is agreed upon which says that the appellants right does not fall within the four corners of the Scheme for the reasons that the quantification occurred only on 07.09.2019. The impugned judgment of the High Court set aside - it is directed that the benefits of the Scheme must be extended to the appellants - appeal allowed.

Summary

The Supreme Court granted leave and allowed Civil Appeals arising from the Bombay High Court's order dated 13-09-2022 concerning the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Scheme defines "tax dues" to include amounts "quantified" on or before 30-06-2019 during enquiry, investigation, or audit, where "quantified" means a "written communication of the amount of duty payable" (Section 121(r)). Circular 1071/4/2019-CX.8 clarifies that such written communication includes letters intimating duty demand or admissions of liability during proceedings.The Court emphasized the appellants' admission of liability recorded on 07-05-2019, where they acknowledged the correctness of quantification based on working sheets. This admission formed the basis for extending Scheme benefits to the main company on 27-12-2019, shortly before the appellants filed their declaration. The Union did not dispute these facts.Rejecting the High Court's view that quantification occurred only on 07-09-2019, the Supreme Court held that the appellants' rights fall within the Scheme's scope. It set aside the High Court's judgment and directed that the Scheme's benefits be extended to the appellants, allowing the Civil Appeals with no order as to costs.