Pre-cut-off admission of tax dues can establish eligibility under the legacy dispute resolution scheme despite later quantification objections.

A pre-cut-off-date admission of service tax dues can satisfy eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 even if the department later disputes final quantification. The petitioner's director admitted unpaid service tax during investigation, and the same figure was consistently reflected in the declaration and scheme responses. The Court held that the scheme required a bona fide identification of dues before the cut-off date, not mathematical precision or completion of adjudication through a later show cause notice. The rejection of the declaration was quashed, and the respondents were directed to process it afresh and issue the discharge certificate on payment of the balance amount.

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Issues: Whether the petitioner was entitled to relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on the basis of an admitted service tax liability quantified and accepted before the cut-off date, despite the department's later rejection on the ground that the dues were not finally quantified.

Analysis: The petitioner's director had, during investigation, admitted unpaid service tax liability of Rs. 72.37 lakhs for the relevant period and the same figure was thereafter carried into the declaration, the committee's estimate, and the subsequent response in the scheme forms. The later rejection rested on a ground not found in the impugned order's operative basis and, in any event, the scheme required a bona fide admission of tax dues before the cut-off date, not mathematical precision or completion of adjudication by issuance of a later show cause notice. The Court applied the scheme's object of resolving legacy disputes and followed the principle that admitted dues, if identified before the cut-off date, satisfy the threshold for eligibility under the enquiry/investigation category.

Conclusion: The petitioner was held eligible to avail the scheme, the rejection of the declaration was quashed, and the respondents were directed to process the declaration afresh and issue the discharge certificate on payment of the balance amount.

Ratio Decidendi: Under the legacy dispute resolution scheme, eligibility depends on a pre-cut-off-date admission of tax dues, and such admission need not match the department's later quantification with exact mathematical precision.

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