Statutory credit under the Sabka Vishwas Scheme requires full examination of deposit records before fixing the amount payable.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, any amount already paid as pre-deposit in appellate proceedings or as deposit during inquiry, investigation or audit must be deducted while determining the amount payable under section 124(2). The designated committee was required to examine the supporting record, including challans and appellate material, before fixing liability and could not deny statutory credit merely for want of a narrow proof assessment. The objection based on section 130 did not override the duty to first determine the correct deductible amount. The authorities were therefore directed to re-examine the material and decide entitlement to deduction of the amount claimed.

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Issues: Whether the amount paid by the declarant during the inquiry could be treated as pre-deposit or deposit for deduction under section 124(2) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and whether the designated committee was required to examine the supporting material before fixing the amount payable.

Analysis: Section 124(2) mandates deduction of any amount already paid as pre-deposit during appellate proceedings or as deposit during inquiry, investigation or audit while issuing the statement of amount payable. The material placed before the authorities included references in the appellate record, challans and subsequent communications seeking adjustment of the sum already paid. The committee did not meaningfully examine this material and proceeded only on the footing that proof of deposit had not been produced. In such circumstances, the statutory scheme required a proper examination of the documents to determine whether credit was available and whether the amount payable under the scheme had to be reduced accordingly. The objection based on section 130 did not displace the mandatory obligation under section 124(2) to first determine the correct deductible amount.

Conclusion: The issue was answered in favour of the petitioner to the extent that the authorities were directed to re-examine the material and decide entitlement to deduction of Rs. 55,06,021/- under section 124(2).

Ratio Decidendi: Where a settlement scheme requires deduction of pre-deposit or deposit already made, the designated authority must examine the supporting record before determining the amount payable and cannot refuse statutory credit without considering the material placed on record.

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