Sabka Vishwas relief computed on arrears and adjusted for pre-deposits under the statutory scheme.

The Sabka Vishwas scheme was treated as a complete code for settling legacy indirect tax disputes. Relief under section 124 had to be computed on the amount of tax dues reflected in the amount in arrears under the underlying order, and pre-deposits already made were required to be deducted when determining the amount payable under section 127. On that construction, the circular dated 25.09.2019 and the SVLDRS-3 statement were consistent with the statutory scheme, and no breach of section 124(1)(c) or section 124(2) was shown.

---

---

Issues: Whether the circular dated 25.09.2019 and the SVLDRS-3 statement dated 01.02.2020 were contrary to the Finance (No. 2) Act, 2019 in computing relief under section 124(1)(c) on the basis of the amount in arrears and in adjusting pre-deposits while determining the amount payable.

Analysis: The Scheme was treated as a complete code for settlement of legacy indirect tax disputes. The expressions "amount in arrears", "amount of duty" and "amount payable" were read together with section 124. On that construction, the relief under section 124(1)(c) had to be computed on the amount recoverable as arrears under the underlying order, and the amount already deposited was required to be deducted while issuing the statement under section 127. The computation in SVLDRS-3 was found to accord with the statutory scheme and no breach of section 124(1)(c) or section 124(2) was shown.

Conclusion: The challenge to the circular and to the SVLDRS-3 computation failed, and the issue was answered against the petitioner.

Ratio Decidendi: Under the Sabka Vishwas scheme, relief under section 124 is to be computed on the amount of tax dues represented by the amount in arrears, and pre-deposits already made must be adjusted while determining the final amount payable.

---