Sabka Vishwas verification requires consideration of credit reversals and prior payments when computing settlement amounts.

The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 requires the designated committee to verify the correctness of a declarant's claim using both the declaration and the department's records. That verification includes checking whether amounts claimed as already paid were in fact paid, including by reversal or adjustment of CENVAT credit, and such sums must be considered while computing the amount payable under the Scheme. The process is intended to determine the correct settlement amount and not to become an appellate examination of the underlying dispute. Fresh determination must be based on relevant records and documents, with a personal hearing where required.

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Issues: Whether the designated committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was required to verify the declarant's claim of payment by adjustment of CENVAT credit and deduct the same while computing the amount payable under Section 124 of the Finance Act, 2019, and whether the statement issued under Section 127 could be sustained without such verification.

Analysis: The Scheme is a beneficial settlement mechanism intended to bring finality to legacy indirect tax disputes. Under Section 126 of the Finance Act, 2019 and Rule 6(1) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019, the designated committee is required to verify the correctness of the declaration on the basis of the particulars furnished by the declarant as well as the records available with the department. Such verification extends to examining whether the declarant had in fact paid amounts claimed in the declaration, including by reversal of credit, and the exercise is not meant to become an appellate adjudication on the pending dispute. Amounts already paid are required to be adjusted while determining the amount payable under the Scheme.

Conclusion: The statement could not be sustained to the extent it ignored the declarant's asserted payment by credit reversal, and the committee was bound to consider the relevant records and documents before issuing a fresh statement.

Final Conclusion: The impugned statement was set aside and the matter was sent back for fresh determination after verification of the declarant's payment details and after affording a personal hearing.

Ratio Decidendi: Under the Sabka Vishwas scheme, the designated committee must verify the truthfulness of the declaration by considering both the declarant's particulars and the department's records, and amounts already paid cannot be ignored while computing the amount payable.

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