TMI Blog2023 (2) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... e imagination of the purpose which lie behind them. The interpretation cannot be too literal in meaning of words that it misses the soul and sees the skin only. With respect to the fiscal statutes, it is trite law that the tests of vice of discrimination in the taxating law is less rigorous. The provisions contained in Sections 124 and 130 of the Act have close nexus and are in consonance with the objective sought to be achieved by the legislature in enacting the Act. The object sought to be achieved is to end the disputes without creating liabilities. Legislature in its own wisdom in order to achieve the objective of encashing the disputes has reiterated the underlying condition i.e. no refund has to be granted. The scheme is optional. The petitioner is under no obligation to opt for the same. Petitioner may opt after weighing benefits or may opt to continue with pending appeal. The argument raised by senior counsel for the petitioner that the same will be discriminatory to the petitioner as the assessee who has not deposited more than the pre-deposit will have a march over an assessee like petitioner who has deposited more than pre-deposit is misconceived. Petition dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v-East-1/2019-20/84 dated April 09, 2019 ( SCN 4 ) April 01, 2016- June 30, 2017 INR 7,72,91,924 3. Qua show cause notices issued for the financial years 2013- 14 and 2014-15, service tax liability of Rs.19,98,69,101/- was confirmed by the authority vide order dated 29.12.2017. Petitioner claims to have deposited the same alongwith interest and penalty amount total aggregating to Rs.22,93,69,842/-. The petitioner preferred appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT) challenging the order dated 29.12.2017. 4. Petitioner further claims to have deposited an amount of Rs.5,94,68,006/- under protest qua show cause notice issued for the financial year 2016-17 as well. During the pendency of the appeal, respondent promulgated the 2019 Act with an intent to achieve resolution and settlement of legacy cases of Central Excise and Service Tax. The petitioner claims himself to be eligible to claim the benefit of scheme by filing requisite declaration. However, it has been claimed that provision as contained in Section 124 of the Act only allows adjustment of pre-deposits made during the appellate proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same should not be subjected to the minute gravities of Article 14 of the Constitution of India. The scheme has been framed in order to resolve legacy disputes and is not intended to suit or not-suit a particular assessee. Moreover, the scheme is optional in nature and there is no compulsion for an assessee to opt for the same which itself is sufficient to demolish the case of the petitioner. 8. We have heard counsel for the parties and have gone through the records of the case. 9. Before adverting to the facts of the present case, it will be apt to run through the provisions contained in Sections 124 and 130 of the Act:- 124. (1) Subject to the conditions specified in sub-section (2), the relief available to a declarant under this Scheme shall be calculated as follows:- (a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,- (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; (b) where the tax dues are relatable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. (2) In case any predeposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded. 10. A bare perusal of the afore reproduced provisions shall reveal that while declaring the scheme, legislature in its own wisdom has repeatedly reiterated that the declarant under the scheme shall not be entitled for any refund irrespective of the fact as to whether the amount of pre-deposit or deposit already paid by the declarant exceeds the amount payable under the scheme. 11. Learned senior counsel for the petitioner is wrong in ascertaining that Section 124 violates Article 14 and breeds hostile discrimination. Trite it is wooden equality is neither feasible nor the mandate of Part-II of the Constitution of India. 12. Reliance by the learned senior counsel appearing for the petitioner on law laid down in N.S. Rathnam and sons case (supra) is misconceived. In the said case, the issue involved two notifications of even date pertaining to same goods. The duty leviable on the said goods was governed by Section 3 of the Customs Tariff Act, 1975. Duty was payable by two differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... events, etc., for taxation. The tests of the vice of discrimination in a taxing law are, accordingly, less rigorous. In examining the allegations of a hostile, discriminatory treatment what is looked into is not its phraseology, but the real effect of its provisions. A legislature does not as an old saying goes, have to tax everything in order to be able to tax something. If there is equality and uniformity within each group, the law would not be discriminatory. Decisions of this Court on the matter have permitted the legislatures to exercise an extremely wide discretion in classifying items for tax purposes, so long as it refrains from clear and hostile discrimination against particular persons or classes. 47. But, with all this latitude certain irreducible desiderata of equality shall govern classifications for differential treatment in taxation laws as well. The classification must be rational and based on some qualities and characteristics which are to be found in all the persons grouped together and absent in the others left out of the class. But this alone is not sufficient. Differentia must have a rational nexus with the object sought to be achieved by the law. The St ..... X X X X Extracts X X X X X X X X Extracts X X X X
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