SVLDRS relief computation under the Finance Act: net arrears and pre-deposits were assessed against the statutory scheme.

The article examines whether a circular and the SVLDRS-3 computation were consistent with the Finance (No. 2) Act, 2019 in calculating relief under Section 124(1)(c) on the net outstanding amount and in adjusting pre-deposits while determining the balance payable. It explains that the statutory definitions of "amount in arrears" and "amount payable" under Section 121, together with the relief mechanism in Section 124, were applied to take the arrears from the order-in-original after appropriating amounts already deposited. On that basis, the designated committee's computation of relief and the balance payable was treated as not apparently contrary to the Act, and no error in the SVLDRS-3 computation was identified. No final adjudication was made.

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Issues: Whether the impugned circular and the SVLDRS-3 statement were contrary to the scheme of the Finance (No. 2) Act, 2019 in computing relief under Section 124(1)(c) on the basis of the net outstanding amount and in adjusting pre-deposits while determining the amount payable.

Analysis: The order noted the statutory definitions of "amount in arrears" and "amount payable" under Section 121 and the relief mechanism under Section 124. On the facts, the amount in arrears was taken from the order-in-original after appropriating amounts already deposited, and the designated committee computed relief and the balance amount payable accordingly. The order recorded that, on this basis, the circular did not appear to violate Section 124(1)(c) or Section 124(2), and the SVLDRS-3 computation also did not suffer from error.

Outcome: No final adjudication was made. The matter was directed to be listed again for further hearing.

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