Court interprets Sabka Vishwas Scheme broadly, including redemption fine. Eligibility criteria upheld, interim relief granted.

The court found that the Sabka Vishwas Scheme, 2019 applies to cases involving confiscation and redemption fine, as the legislature did not intend to exclude them. The interpretation of "fine" under the Scheme includes redemption fine, not just the fine under the Central Excise Act. Eligibility criteria for declarants under the Scheme were upheld, and the court granted interim relief by allowing petitioners to file fresh declarations without payment of redemption fine pending further consideration, extending this benefit to similarly situated declarants. The matter was set for further review on 23rd January 2020.

---

---

Issues Involved:
1. Applicability of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to cases involving confiscation and redemption fine.
2. Interpretation of "fine" under the Scheme, specifically whether it includes redemption fine or fine under section 9 of the Central Excise Act.
3. Eligibility of declarants under the Scheme and conditions for issuing discharge certificates.

Issue-Wise Detailed Analysis:

1. Applicability of the Scheme to Cases Involving Confiscation and Redemption Fine:
The petitioners challenged the rejection of their declarations under the Scheme by the Designated Committee, which argued that the Scheme does not cover cases involving confiscation and redemption fine. The petitioners contended that the Scheme should apply to such cases because section 125 of the Finance Act does not explicitly exclude them. The court noted that section 125 allows "all persons" to make declarations except for specific exclusions, none of which mention confiscation and redemption fine. The court observed that the Board's FAQs, press notes, and flyers suggest that the Scheme provides relief in tax dues for all categories of cases, including waiver of interest, fine, and penalty. Thus, the court found that the legislature did not intend to exclude cases involving confiscation and redemption fine from the Scheme.

2. Interpretation of "Fine" Under the Scheme:
The petitioners argued that the waiver of fine under the Scheme should include redemption fine, not just the fine under section 9 of the Central Excise Act. They pointed out that the Board's communications and clarifications imply that waiver of fine is allowed under the Scheme. The court noted that section 9 of the Central Excise Act pertains to fines imposed upon conviction for offenses, which are excluded from the Scheme under section 125(b) of the Finance Act. Therefore, the court concluded that the fine referred to in the Scheme must be redemption fine, as it is the only other fine contemplated under the Central Excise Act. The court also highlighted that the Board's communication dated 20th December 2019, acknowledged that waiver of fine is allowed under the Scheme, but distinguished it from redemption fine, which the court found inconsistent with the Scheme's intent.

3. Eligibility of Declarants and Conditions for Issuing Discharge Certificates:
The court examined the eligibility criteria under section 125 of the Finance Act and found that persons with cases involving confiscation and redemption fine are not excluded from making declarations under the Scheme. The court also reviewed section 129 of the Finance Act, which provides that a discharge certificate is conclusive as to the matter and time period stated therein, and the declarant shall not be liable to pay further duty, interest, or penalty. The court noted that while the Scheme does not explicitly mention fine/redemption fine, the Board's communications implied that waiver of fine is included. The court found that the Designated Committee's rejection of the petitioners' declarations was not in consonance with the Scheme, which aims to provide a complete resolution of the matter.

Conclusion and Interim Relief:
The court concluded that the matter requires further consideration and issued a rule returnable on 23rd January 2020. The court granted interim relief by staying the impugned orders and allowing the petitioners to file fresh declarations under the Scheme without payment of redemption fine, subject to the final outcome of the petition. The court also extended the benefit of this order to similarly situated declarants who have not approached the court, provided they file an undertaking to pay the redemption fine if the final outcome is against the petitioners.

---