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2020 (12) TMI 283 - ALLAHABAD HIGH COURTSabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Grant of remission - grant of deduction of pre-deposit - validity of Paragraph 2(iv) of the impugned circular dated 25.09.2019 - vires of provisions of sub-section (2) of Section 124 of The Finance (No.2) Act, 2019 or not - breach of provisions of Section 124 (2) of the Finance (No.2) Act, 2019 or not - HELD THAT:- Perusal of the provisions of the Scheme, shows that the Scheme is a complete Code in itself. In substance, it is a scheme for recovery of duty/indirect tax to unlock the frozen assets and to recover the tax arrears at a discounted amount. Thus, “Sabka Vishwas Scheme”, although a beneficial scheme for a declarant, is statutory in nature, which has been enacted with the object and purpose to minimise the litigation and to realise the arrears of tax by way of settlement at discounted amount in an expeditious manner. In other words the scheme is a step towards the settlement of outstanding disputed tax liability. Facts of the present case are that an order in original dated 29.03.2019 was passed by the Respondent No.3 against the petitioner confirming a demand of service tax of ₹ 4,53,63,720/-, ₹ 2,84,02,508/- and ₹ 85,84,024. The amount already deposited by the petitioner i.e. ₹ 3,64,81,370/- + ₹ 2,18,84,061/-, were appropriated by the order in original itself. Thus as per aforesaid order in original dated 29.03.2019 the amount of tax in arrear was ₹ 1,74,66,374/-. This amount was recoverable as arrears of duty under the indirect tax enactment. Thus, the aforesaid amount of ₹ 1,74,66,374/- is the “amount in arrears” under Section 121(c) of the Act - The words “amount payable” has been defined in Section 121 (e) of the Act. It means the amount calculated by the authority as the amount of tax dues less the tax relief. Thus, the amount of tax dues being the amount in arrears in terms of provisions of Section 124(1)(c) read with Section 121(c) of the Finance (No.2) Act, 2019 is the amount of duty which is in arrears as per order in original dated 29.03.2019 i.e. ₹ 1,74,66,374/-. Accordingly, it has been reflected in the SVLDRS-3, by the designated authority who computed the amount of tax relief under Section 124(1)(c) at ₹ 69,86,549.60. Thus, the balance amount as estimated amount payable has been determined at ₹ 1,04,79,824.40. The Tax relief under Section 124(1)(c) has been given to the petitioner for ₹ 69,86,549.60. The balance amount of ₹ 1,04,79,824.40 determined by the designated authority and payable by the petitioner under Section 127, is in accordance with the provisions of Section 124(1)(c) read with Section 121(c)/(d) and (e) of the Act which does not suffer from any error of law - From the facts and the legal provisions as aforenoted neither the circular is in breach of the provisions of Section 124(1)(c) or sub-section (2) of Section 124 nor the amount estimated as per SVLDRS-3 dated 01.02.2020 suffers from any error of law. Petition dismissed - decided against petitioner.
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