Waiver of interest under Sabka Vishwas Scheme left for competent authority to clarify eligibility and remove ambiguity.

Interest arising from delayed payment of tax dues was treated as an unsettled issue under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, because High Court views differed on whether it falls within "amount of duty" or "amount in arrears". The HC did not decide the merits itself and directed the competent authority to examine the declarant's entitlement under the Scheme and issue a clarificatory circular or instruction to remove ambiguity. The authority was directed to complete the exercise within sixty days.

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Issues: Whether the component of interest arising from delayed payment of tax dues can be waived under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and whether the competent authority should examine the declarant's entitlement under the Scheme.

Analysis: The order noted conflicting High Court views on whether interest linked to belated payment of tax dues falls within the expressions "amount of duty" and "amount in arrears" under the Scheme. Instead of deciding the issue on merits, the Court considered it appropriate that the competent authority apply its mind to the question and issue a clarificatory circular or instruction to remove ambiguity in the field.

Outcome: The petition was disposed of with a direction to the competent authority to decide whether interest arising from delayed payment of tax dues can be waived under the Scheme and to complete the exercise within sixty days.

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