Liberal interpretation of Sabka Vishwas Scheme upheld validity of litigation-category declaration after remand revived adjudication stage.

Eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was to be construed liberally, with exclusion treated as the exception. Where the original adjudication order had been set aside and the matter remanded for fresh decision, the later appellate order meant the dispute was still at the adjudication stage when the declaration was filed. The cut-off date of 30 June 2019 remained relevant, but the prior appellate hearing could not be treated as conclusive on the factual position existing at the time of declaration. The rejection for ineligibility was therefore set aside and the declaration under the litigation category was upheld.

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Issues: Whether the declarant was ineligible to seek relief under the litigation category of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 after the appellate order had set aside the original adjudication order and remanded the matter for fresh decision.

Analysis: The scheme treated eligibility as the norm and exclusion as the exception. The cut-off date of 30 June 2019 was relevant, but the later appellate order had set aside the order-in-original and restored the matter to the stage of adjudication on the show cause notice. As a result, the earlier appellate hearing could not be treated as determinative in the factual setting that existed when the declaration was considered. The scheme had to be applied in a liberal and pragmatic manner, consistent with its object of reducing legacy disputes and with observance of natural justice.

Conclusion: The declaration under the litigation category was held to be valid and the rejection on the ground of ineligibility was set aside in favour of the assessee.

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