Legacy dispute resolution scheme dues must follow the final adjudicated demand, not a higher show cause notice amount after remand.

For computing tax dues under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, a remand order did not automatically revive the entire show cause notice demand where the reduced figure in the order-in-original had attained finality and the taxpayer had already succeeded on the corrected computation. The Court held that the Scheme had to be construed liberally so the taxpayer would not be placed in a worse position because of de novo proceedings, and the Designated Committee could not rely on the higher proposed demand in the show cause notice. The computation was therefore required to be based on the amount confirmed in the order-in-original.

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Issues: Whether, for the purpose of determining tax dues under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, the Designated Committee was required to take the duty amount confirmed in the order-in-original or the higher amount proposed in the show cause notice after the order-in-original had been set aside and the matter remanded.

Analysis: The amount reduced in the order-in-original had attained finality to the extent it was not challenged by the Department, and the reduction was on account of correction of calculation errors in the show cause notice. The Tribunal had remanded the matter for de novo adjudication after finding procedural infirmity, but that did not justify reviving the entire show cause notice amount for computing tax dues under the Scheme. The Scheme was to receive a liberal construction so that a taxpayer who had succeeded in appeal and was willing to pay the amount accepted in the first round would not be placed in a worse position merely because of remand proceedings. The Committee's reliance on the higher amount in the show cause notice was inconsistent with the Scheme and would produce an arbitrary and anomalous result.

Conclusion: The disputed tax dues were required to be computed on the basis of the amount confirmed in the order-in-original, and not on the higher amount proposed in the show cause notice.

Final Conclusion: The petitioner was entitled to have the Scheme benefits worked out on the reduced and finally accepted duty figure, and the impugned computation was set aside with a direction to issue a fresh declaration reflecting that amount.

Ratio Decidendi: For computing tax dues under a legacy dispute resolution scheme, a remand order does not automatically revive the entire show cause notice demand where the adjudicated reduction had attained finality and the taxpayer would otherwise be placed in a worse position for having pursued an appeal.

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