Credit for pre-deposits under Sabka Vishwas must be given when calculating payable dues under the dispute resolution scheme.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, amounts paid as pre-deposit and other non-appropriated deposits connected with the dispute had to be deducted while determining the amount payable. The Finance Act, 2019 required credit for eligible deposits at the stage of issuing the statement of amount payable, and the Scheme operated as a self-contained code, so the declarant was not required to pursue adjustment through the ordinary return process. Because the Designated Committee omitted material deposits reflected in the record, the estimate and consequential statement were unsustainable and had to be reworked with proper credit.

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Issues: Whether amounts paid by the declarant as pre-deposit or deposit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 were required to be deducted while determining the amount payable and whether the Designated Committee was bound to reconsider the declaration after taking all such deposits into account.

Analysis: Section 124(2) of the Finance Act, 2019 mandates deduction of any amount paid as pre-deposit at any stage of appellate proceedings and any deposit made during enquiry, investigation or audit while issuing the statement of amount payable. The departmental circulars clarified that deposits made after the show cause notice, but before adjudication and not yet appropriated, could also be adjusted at the time of determination under the Scheme. The Scheme was treated as a self-contained code, so the declarant was not required to seek adjustment through the ordinary return process. On the facts, the Committee had noted one admitted pre-deposit but had omitted other material deposits reflected in the record, and therefore the estimate and consequential statement were liable to be corrected.

Conclusion: The omission to account for all eligible deposits was unsustainable, and the petitioner was entitled to fresh consideration of the declaration with proper credit for the deposits and further action under the Scheme.

Final Conclusion: The estimate and consequential statement were set aside and the matter was directed to be reworked in accordance with the Scheme so that the declarant could obtain the statutory relief after proper adjustment of eligible deposits.

Ratio Decidendi: Under Section 124(2) of the Finance Act, 2019, all eligible pre-deposits and non-appropriated deposits connected with the dispute must be given credit while determining the amount payable under the Scheme, and the designated committee must apply the Scheme as a self-contained mechanism.

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