Court upholds Sabka Vishwas Scheme circulars, dismisses writ petition on relief calculation.

The court dismissed the writ petition challenging circulars related to the Sabka Vishwas Scheme, finding no legal errors in calculating relief under the Finance (No.2) Act, 2019. It determined that the designated authority correctly assessed the relief and the amount payable by the petitioner, in compliance with statutory provisions. Additionally, the court allowed the petitioner to seek consideration for delayed payment due to the COVID-19 Pandemic without issuing a formal directive.

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Issues:
1. Challenge to circular dated 25.09.2019 and SVLDRS-3 dated 1.2.2020.
2. Interpretation of provisions of Finance (No.2) Act, 2019.
3. Calculation of relief under Sabka Vishwas Scheme.
4. Compliance with statutory requirements in determining tax relief.
5. Consideration of relief under Section 124(1)(c) of the Act.
6. Determination of amount payable by the declarant.
7. Compliance with procedural requirements under the Scheme.
8. Request for the acceptance of payment due to COVID-19 Pandemic.

Analysis:

1. The writ petition challenged the circular dated 25.09.2019 and SVLDRS-3 dated 1.2.2020. The petitioner sought the quashing of the circular, direction to accept SVLDRS-1 Declaration, and relief of remission on a specific amount. The petitioner argued that provisions of the circular and SVLDRS-3 were in breach of the Finance (No.2) Act, 2019.

2. The court analyzed the provisions of Chapter V of the Finance (No.2) Act, 2019, which introduced the Sabka Vishwas Scheme. The scheme aimed to settle tax arrears at a discounted amount to minimize litigation. The court highlighted various sections empowering designated committees, calculating relief percentages, and providing immunities to declarants.

3. The court delved into the definition of "amount in arrears," "amount of duty," and "amount payable" under Sections 121 and 124 of the Act. It examined the petitioner's tax arrears as per the original order and the computation of relief under Section 124(1)(c) for the declarant. The court emphasized the importance of correctly determining the amount payable by the declarant.

4. It was established that the relief under the Sabka Vishwas Scheme was calculated based on the tax dues relatable to the amount in arrears. The court noted that the designated authority had appropriately determined the relief and the balance amount payable by the petitioner in accordance with the statutory provisions.

5. The court concluded that neither the circular nor the SVLDRS-3 suffered from any legal errors in calculating the relief under Section 124(1)(c). The judgment dismissed the writ petition, finding no merit in the petitioner's claims regarding the breach of statutory provisions.

6. Lastly, the court addressed the petitioner's request for the acceptance of payment delayed due to the COVID-19 Pandemic. While not issuing a specific direction, the court allowed the petitioner to approach the relevant authority for consideration, emphasizing that no formal directive was provided in this regard.

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