Redemption fine is covered under Sabka Vishwas relief, and rejection solely on that ground cannot stand.

Redemption fine could not be excluded from the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 merely because the declaration did not concern duty, interest or penalty alone; the rejection on that basis was held unsustainable and set aside. Delay in challenging the rejection was also not treated as fatal, having regard to the COVID-19 limitation extension and the surrounding facts on service of the order. The writ petitions were therefore entertained, and the matters were remitted for reconsideration under the Scheme with redetermination of the amount payable.

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Issues: (i) Whether an application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could be rejected on the ground that it related to redemption fine and not only to duty, interest or penalty. (ii) Whether the writ petitions were liable to be dismissed for delay in challenging the rejection order.

Issue (i): Whether an application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 could be rejected on the ground that it related to redemption fine and not only to duty, interest or penalty.

Analysis: The Scheme was intended to reduce legacy litigation and provide broad relief to assessees. The rejection was founded only on the view that redemption fine stood outside the Scheme. That approach was held to be unsustainable in light of the interpretation already accepted in comparable proceedings, where redemption fine was treated as covered within the Scheme's relief structure and not as a separate disqualifying factor. The declaration was therefore not to be excluded merely because the dispute involved redemption fine.

Conclusion: The rejection on the ground that the matter involved redemption fine was not justified and was set aside.

Issue (ii): Whether the writ petitions were liable to be dismissed for delay in challenging the rejection order.

Analysis: The challenge was examined in the backdrop of the COVID-19 limitation extension and the surrounding facts as to service of the rejection order. In the circumstances, the delay was not treated as fatal. The petitions were also viewed through the lens of the beneficial object of the Scheme, and the Court found no reason to non-suit the petitioners on limitation.

Conclusion: The petitions were not rejected on the ground of delay.

Final Conclusion: The impugned rejection orders were interfered with and the matters were sent back for reconsideration under the Scheme, including redetermination of the amount payable.

Ratio Decidendi: Redemption fine cannot be excluded from the relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 merely because the declaration does not concern duty, interest or penalty alone.

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