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2023 (9) TMI 525 - HC - Service TaxSVLDRS - determination of amount due and payable - Considering / Factoring the amount paid by the petitioner towards interest prior to the issuance of SCN - Sabka Vishwas (Legacy and Dispute Resolution) Scheme 2019 - Calling upon to pay amount due and payable by the petitioner - HELD THAT:- The provisions of the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 in terms of Finance Act, 2019 is clear under Section 124(2). The relief calculated under Sub-Section (1) shall be subject to the condition that the amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant - the proviso merely states that if any amount in excess has been paid as pre-deposit before filing an application, a declaration will not be entitled to refund. There is no scope for any confusion. The provisions of the Sub- Section (2) makes it clear that any amount that is paid as pre-deposit at any stage of appellate proceedings under an indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the final settlement. In this case admittedly, the tax that was proposed to be demanded from the petitioner was Rs. 16,52,721/- in Show Cause Notice No.93/2019 dated 02.12.2019. Prior to issuance of Show Cause Notice No.93/2019 dated 02.12.2019, the petitioner has already deposited a sum of Rs. 7,28,247/- on 12.04.2019 towards duty of Rs. 4,37,933/- and Rs. 2,90,314/- towards interest on 09.04.2019. Thus, the amount of Rs. 7,28,247/- paid by the petitioner has to be adjusted the amount due under the Scheme from the petitioner. The concession that has been given to the petitioner under the Scheme is Rs. 9,24,474/- from the amount proposed in the aforesaid Show Cause Notice No.93/2019 dated 02.12.2019 from Rs. 1652721/- proposed in the Show Cause Notice dated 02.12.2019 - amount that was pre-deposited by the petitioner is equivalent to the amount that was payable by the petitioner. Therefore, the amount ought to have been adjusted towards the amount payable by the petitioner under the SVLDRS Scheme, 2019. There are no merits in the stand of the Department that the amount was not been paid under protest and was not a pre-deposit. The provisions is clear. The provision clearly allows the amount paid as pre-deposit to be adjusted. There is no merits in contention of Department. The amount paid towards duty and the interest that was proposed to be adjusted in the Show Cause Notice No.93/2019 dated 02.12.2019 has to treated as amount pre-deposited. Therefore, it has to be allowed to adjusted. Petition allowed.
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