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of <h1>Court affirms assessee's right to adjust entire deposit against tax liability under Sabka Vishwas Scheme</h1> <h3>Commissioner of Central Excise and Service Tax, Dehradun and another. Versus Patanjali Ayurveda Ltd.</h3> Commissioner of Central Excise and Service Tax, Dehradun and another. Versus Patanjali Ayurveda Ltd. - TMI Issues:1. Interpretation of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.2. Adjustment of amounts deposited under different heads against tax liability.3. Applicability of judgments from other High Courts.4. Authority of circulars issued by the Central Board of Indirect Taxes and Customs.Issue 1: Interpretation of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019:The judgment pertains to a special appeal against a writ petition challenging Form SVLDRS No.3 issued by the respondent under the Sabka Vishwas Scheme, 2019. The scheme, under Sections 120 and 124 of the Finance Act, 2019, provides relief to declarants based on the nature of tax dues. The appellant department estimated the duty payable by the respondent, ignoring the amount deposited under protest. The court analyzed the scheme and held that the department should have adjusted the entire amount deposited by the assessee before adjudication of the liability, whether towards Central Excise Duty or interest.Issue 2: Adjustment of amounts deposited under different heads against tax liability:The respondent argued that all amounts deposited under protest, including Central Excise Duty and interest, should be adjusted against the tax liability under the scheme. The appellant contended that only the amount deposited towards Central Excise Duty was liable for adjustment. The court referred to a judgment from the Punjab and Haryana High Court, which held that all amounts deposited by the assessee, irrespective of the head, should be adjusted against the tax dues payable under the scheme. The court found merit in this argument and dismissed the appeal.Issue 3: Applicability of judgments from other High Courts:The court considered the judgment of the Punjab and Haryana High Court in a similar case, which was accepted by the appellant department without challenging it in the Supreme Court. The court held that the decision of the Punjab and Haryana High Court was relevant and binding in the present case, as the department cannot adopt different standards in similar cases.Issue 4: Authority of circulars issued by the Central Board of Indirect Taxes and Customs:The respondent relied on a circular issued by the Central Board of Indirect Taxes and Customs, which clarified the adjustment of deposits made under protest during enquiry, investigation, or audit. The circular emphasized that such deposits should be adjusted to determine the final amount payable by the declarant. The court considered this circular in conjunction with the scheme provisions and upheld the respondent's argument regarding the adjustment of all deposited amounts.In conclusion, the court dismissed the appeal, affirming that the entire amount deposited by the assessee under protest should be adjusted against the tax liability, in line with the Sabka Vishwas Scheme, 2019 and relevant judicial precedents.
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