TMI Blog2021 (12) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... ish between the amounts paid under different heads. It clearly envisages two kinds of deductions firstly any pre-deposit made at any stage of appellate proceedings under the indirect tax enactment and secondly, any deposit made during enquiry, investigation or audit. Both these species of 'pre-deposit' need to be deducted while finalizing the computation. Amount deposited by the petitioner falls in the second category. The provision only talks of amount irrespective of whether it has been paid as tax or interest or penalty. Thus, the view taken by the Designated Committee cannot be sustained. There is another side to the story. Had the petitioner remitted the entire amount paid by him towards tax, the respondents would have given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty respectively. The petitioner was served with a show cause notice dated 12.04.2019 whereby further amount of ₹ 9,86,53,074/- was sought to be recovered on account of cenvat credit. This amount included interest and penalty as well. Before the proceedings on the aforesaid show cause notice could proceed further, an amnesty scheme by way of Finance (No.2) Act, 2019 was introduced by the Central Government. The main objective of the scheme is to provide for the settlement of pending disputes related to indirect taxes. The petitioner being eligible under the said scheme availed the same by making declaration in Form SVLDRS-1. As per the petitioner, his declaration was accepted though with a variation in the computation of amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity of personal hearing on 07.02.2020. The submissions made by the petitioner in the personal hearing could not find favour with the Designated Committee and thereafter Form SVLDRS-3 dated 26.02.2020 was also issued reiterating the computation and remarks as mentioned in SVLDRS-2. The petitioner by way of the present petition under Article 226 of the Constitution of India approached this Court challenging the computation made by Designated Committee. Notice of motion was issued on 17.03.2020. Owing to outbreak of Covid-19, the said writ petition got adjourned. In the meantime, petitioner was called for personal hearing by respondent No.1-Commissioner, Central GST, Gurugram pursuant to show cause notice dated 12.04.2019. The peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g calculation of tax dues while granting relief under the amnesty scheme. Accordingly, payments made under the head of interest and penalty cannot be deducted. Admittedly, the petitioner has deposited amounts of ₹ 2,29,61,536/- and further sum of ₹ 1,16,51,272/- on account of interest and ₹ 34,44,227/- as penalty, even prior to issuance of show cause notice. The question that arises for adjudication is as to whether the petitioner is entitled for credit of amount deposited under the head of interest and penalty while quantifying the amount payable under the scheme. Section 124 of the Finance Act provides for calculation of the relief available to the declarant and the same reads as follows:- 124. (1) Subject to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enty per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. Of the tax dues; (e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues. (2) The relief calculated under sub-section (1) shall be subject to the condition that any 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: Provided that if the amount of pre-deposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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