Prior quantification of duty, not the show cause notice date, governed eligibility under the legacy dispute resolution scheme.

Eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 turned on whether duty was quantified by written communication or admitted liability on or before 30 June 2019, not on the date of the show cause notice. The Bombay HC held that Section 125(1)(e) could not be invoked merely because the show cause notice was issued after the cutoff date. As the reconciliation statement and the petitioners' admission recorded the duty payable before 30 June 2019, the demand stood quantified within Section 2(r). The rejection of the declaration was therefore unsustainable, and the authority was directed to proceed with issuance of the next form.

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Issues: (i) Whether a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could be rejected under Section 125(1)(e) merely because the show cause notice was issued after 30 June 2019. (ii) Whether the duty demand had been quantified on or before 30 June 2019 within the meaning of Section 2(r) of the Scheme.

Issue (i): Whether a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could be rejected under Section 125(1)(e) merely because the show cause notice was issued after 30 June 2019.

Analysis: The disqualification in Section 125(1)(e) turns on whether the person was subjected to inquiry, investigation or audit and whether the amount of duty involved had not been quantified on or before 30 June 2019. The date of issuance of the show cause notice, by itself, is not the determinative factor. The relevant question is only whether quantification had already occurred within the prescribed period.

Conclusion: The declaration could not be rejected merely because the show cause notice was issued after 30 June 2019.

Issue (ii): Whether the duty demand had been quantified on or before 30 June 2019 within the meaning of Section 2(r) of the Scheme.

Analysis: The reconciliation statement submitted during the proceedings recorded the duty payable at a specific amount, and the statement of the second petitioner also admitted the same liability. The Scheme treats "quantified" as a written communication of the amount of duty payable, including duty liability admitted during inquiry, investigation or audit. On that basis, the demand stood quantified before the cutoff date.

Conclusion: The duty demand had been quantified on or before 30 June 2019, and the petitioners were eligible to avail the Scheme.

Final Conclusion: The rejection of the declaration was unsustainable, and the authority was directed to issue the next form so that the petitioners could pay the balance amount and close the matter.

Ratio Decidendi: For eligibility under Section 125(1)(e) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, the consideration is prior quantification of duty by written communication or admitted liability before 30 June 2019, not the date on which the show cause notice is issued.

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