TMI Blog2022 (9) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation or audit shall be deducted when issuing the statement indicating the amount payable by the declarant. Thus, it is clear that statute itself do not make any distinction between payment of taxes, interest thereon or any penalty in amount which has been deposited during enquiry, investigation or audit shall be deducted while issuing the statement and shall be adjusted while calculating relief to the declarant. This Court is of the opinion that Section 124 of the Finance Act, 2019, is a benevolent provision. The Parliament in its wise discretion thought it proper to grant one time relief to all tax payers under the GST Scheme so that disputes can be resolved amicably and restrictive parochial interpretation of the provisions shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,69,680/- with 18% interest per annum to him. 3. The short question that arises for determination in this writ petition is whether the amount paid by the petitioner, under protest, towards interest , prior to issuance of show cause shall be considered as pre-deposit while disposing his application for waiver under Sabka Vikas (Legacy Dispute Resolution) Scheme, 2019 which was issued under Section 24 of the Finance Act. 4. The learned counsel for the petitioner would submit that a Division Bench of Punjab and Haryana High Court at Chandigarh, in the case of Schlumberger Solutions Pvt. Ltd. vs. Commissioner Central GST Ors. in CWP-6845-2020 on dated 30.11.2021 has already decided this question. The only difference is that in the ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax dues; (b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty; (c) where the tax dues are relatable to an amount in arrears and,- (i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,- (A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (B) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation or audit shall be deducted when issuing the statement indicating the amount payable by the declarant. Thus, it is clear that statute itself do not make any distinction between payment of taxes, interest thereon or any penalty in amount which has been deposited during enquiry, investigation or audit shall be deducted while issuing the statement and shall be adjusted while calculating relief to the declarant. 8. The High Court of Punjab and Haryana in the case of Schlumberger Solutions Pvt. Ltd. (supra) taking into consideration this provision has held as follows:- A bare reading of Section 124(2) reveals that the relief calculated under Section 124(1) is subject to the condition that any amount paid during the enquiry, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of the order by adjusting amounts paid towards interest and penalty, in accordance with law and the petitioner is directed to make the payment within two weeks from the date Designated Committee issues SVLDRS-3. 9. This Court is of the opinion that the observation made by the Division Bench of Punjab and Haryana High Court is in tune of the provision of Sub-section (2) of Section 124 of the Finance Act, 2019. Hence, the writ petition merits consideration. 10. As far as the technical question raised by Mr. Shobhit Saharia, the learned counsel for the respondents is concerned, this Court is of the opinion that Section 124 of the Finance Act, 2019, is a benevolent provision. The Parliament in its wise discretion thought it proper t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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