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2022 (8) TMI 834 - HC - Service TaxBenefit of waiver of the interest - SVLDRS [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019] - rejection of interest on the ground of ineligibility - whether the component of interest would be covered by the expression “amount of duty”/“amount in arrears” under the said Scheme of 2019 to extend the amnesty available under the scheme to the petitioner or not? HELD THAT:- The Division Bench of Allahabad High Court in Beenu Gupta vs. Union of India and four others [2021 (1) TMI 104 - ALLAHABAD HIGH COURT], dealing with the issue of waiver of interest amount arising from late deposit of tax arrears rejected the petition of the assessee. The Division Bench of Allahabad High Court while rejecting the petition held that “Sabka Vishwas Scheme”, although a beneficial scheme for a declarant, is statutory in nature, which has been enacted with the object and purpose to minimize the litigation and to realize 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. Whereas petitioner has placed reliance of the Division Bench judgment of Bombay High Court in Thought Blurb vs. Union of India and others. [2020 (10) TMI 1135 - BOMBAY HIGH COURT] - In the said decision of Bombay High Court, the question of interest being a part of the arrears of tax for the purpose of the Scheme of 2019 was not involved. The question before the Bombay High Court was as to whether despite the assessee therein being eligible under the scheme was entitled to an opportunity of being heard before the designated Committee under Clause 127 of the Scheme or not? Thus, the said decision of the Bombay High Court is of no avail to the petitioner. Thus, in view of the conflicting views, it would be appropriate that the Competent Authority i.e. the respondent No.2 should apply its mind on the said issue as to whether component of interest levied due to late deposit of tax dues, can be waived under the Scheme of 2019 or not? This Court declining to take any view in the matter leaves it to the respondent No.2 to dwell upon the question - Respondent No.2 is directed to dwell upon the question as to whether the component of interest arising out of delayed payment of tax dues, can be waived under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 or not? - Petition disposed off.
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