Court quashes order on Sabka Vishwas Scheme, emphasizes limited committee role. Reconsideration directed.

The court quashed the order rejecting the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, determining that the case fell under the "arrears" category. It clarified the Designated Committee's limited role in verifying declarations and estimating payable amounts, emphasizing that the department's decision to file an appeal did not alter the categorization. The court directed a reconsideration of the petitioner's declaration within four weeks, granting any consequential benefits.

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Issues Involved:
1. Quashing the order rejecting the declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
2. Determination of eligibility under the "arrears" or "litigation" category.
3. Jurisdiction and authority of the Designated Committee under the Scheme.
4. Interpretation of relevant provisions of the Scheme and corresponding rules.

Detailed Analysis:

1. Quashing the Order Rejecting the Declaration:
The petitioner sought to quash the order dated 15.05.2020, which rejected their declaration under Section 125(2) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ("Scheme of 2019"). The rejection was based on the ground that the respondent had decided to file an appeal against the original order, thus categorizing the case under "litigation" rather than "arrears."

2. Determination of Eligibility under "Arrears" or "Litigation" Category:
The petitioner argued that their case fell under the "arrears" category as defined in Section 121(c) of the Scheme of 2019. They highlighted that no appeal was pending as of 30.06.2019, and the show cause notice was issued after the cut-off date. The respondents contended that the case fell under the "litigation" category because an appeal was contemplated and later filed.

3. Jurisdiction and Authority of the Designated Committee:
The court examined Sections 126 and 127 of the Scheme, along with Rule 6 of the SVLDRS Rules, to determine the Designated Committee's authority. It concluded that the Committee's role was limited to verifying the correctness of the declaration and estimating the payable amount. The Committee had no jurisdiction to deny benefits based on the department's decision to file an appeal.

4. Interpretation of Relevant Provisions:
The court analyzed various sections of the Scheme:
- Section 121(c): Defines "amount in arrears" and does not impose a cut-off date.
- Section 123: Defines "tax dues" and includes a cut-off date of 30.06.2019 for litigation and enquiry/investigation/audit categories.
- Section 124: Relates to tax relief and the calculation of dues.
- Section 125: Lists eligibility conditions, emphasizing that the show cause notice issued after 30.06.2019 places the case under the "arrears" category.

The court found that the petitioner's case fit within the "arrears" category, as the show cause notice was issued after the cut-off date, and no appeal was pending as of 30.06.2019. The court also noted that the appeal filed by the department after the rejection of the declaration did not change the category.

Conclusion:
The court quashed the impugned order dated 15.05.2020 and directed the respondents to reconsider the petitioner's declaration under Section 125(2) of the Scheme of 2019. The respondents were instructed to complete this exercise within four weeks, extending any consequential benefits to the petitioner. The writ application was allowed and disposed of accordingly.

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