Disputed CENVAT credit cannot be adjusted under Sabka Vishwas without proof of entitlement; SVLDRS-3 stands on assessed arrears.

Entitlement to adjust disputed CENVAT credit under the Sabka Vishwas scheme depended on proof that the credit was actually available and admissible. Where part of the credit had already been disallowed in adjudication, the related appeal was time-barred, and the claimant failed to produce supporting documents despite opportunity, the circular and FAQ on input-credit adjustment did not override the concluded disallowance. On that basis, the Designated Committee was justified in issuing SVLDRS-3 on the arrears as determined, and the petitioner could not insist on deduction of the disputed credit.

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Issues: Whether the petitioner was entitled to adjustment of the claimed CENVAT credit while computing the amount under the Sabka Vishwas scheme, and whether the issuance of SVLDRS-3 without accepting the entire claimed credit was unsustainable.

Analysis: The disputed CENVAT credit had already been partly disallowed in adjudication, and the appeal against that order had been dismissed as time-barred. The claim of entitlement to the remaining credit was not supported by necessary documentary evidence, despite opportunity having been given. The clarification in the circular and the FAQ regarding adjustment of input credit applies where the tax paid through input credit is established, but it does not override a concluded disallowance of the claimed credit. In the absence of proof of entitlement, the Designated Committee could not be faulted for issuing SVLDRS-3 on the basis of the arrears as determined.

Conclusion: The petitioner was not entitled to insist on deduction of the disputed CENVAT credit, and the SVLDRS-3 could not be interfered with.

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