TMI Blog2020 (12) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ₹ 69,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. Learned counsel for the petitioner submits as under: (i) Paragraph 2(iv) of the impugned circular dated 25.09.2019 is violative of the provisions of sub-section (2) of Section 124 of The Finance (No.2) Act, 2019, inasmuch as it provides for the relief under Section 124(1) (c) of the said Act on the net outstanding amount whereas the amount for the purpose of relief has first to be determined on the basis of the original demand and thereafter the estimated amount/the amount payable has to be adjusted against the deposits made by the petitioner. (ii) The amount determined by the Respondent No.2 in SVLDRS-3 is in breach of provisions of Section 124 (2) of the Finance (No.2) Act, 2019. 4. Learned Additional Solicitor General of India and learned counsel for Respondent No.2 have supported the action of the respondents. 5. We have carefully considered the submissions of learned counsels for the parties. 6. Provisions of Chapter V of the Finance (No.2) Act, 2019, whereby Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 has been enacted; is an offer by the Government to settle tax arrears locked in litigation at a substantial discount. Section 124 Finance (N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme is a step towards the settlement of outstanding disputed tax liability. 8. Provisions of Sections 121(c)/(d)/(e) and 124 are relevant for the purpose of present controversy, which are reproduced below: 121. In this Scheme, unless the context otherwise requires,- (a) x x x (b) x x x (c) amount in arrears means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of- (i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or (ii) an order in appeal relating to the declarant attaining finality; or (iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019, wherein he has admitted a tax liability but not paid it: (d) amount of duty means the amount of central excise duty, the service tax and the cess payable under the indirect tax enactment; (e) amount payable means the final amount payable by the declarant as determined by the designated committee and as indicated in the statement issued by it, in order to be eligible for the benefits under thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. 10. 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 au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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