High Court quashes order, grants interest waiver under Sabka Vishwas Scheme. Respondents directed to issue Discharge Certificate.

The High Court allowed the writ petition, quashing the order rejecting the petitioner's application for waiver of interest under the "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019." The court directed the respondents to accept the petitioner's Declaration and issue a Discharge Certificate waiving the interest levied under Section 11AB of the Central Excise Act, 1944.

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Issues:
1. Petitioner's liability for interest under Section 11AB of the Central Excise Act, 1944 for belated excise duty payment.
2. Rejection of petitioner's application for waiver of interest under the "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019."

Analysis:
1. The Assistant Commissioner of Customs and Central Excise held the petitioner liable for interest of Rs. 39,67,431 under Section 11AB of the Act for belated excise duty payment for the Financial Years 2005-06 and 2006-07. The petitioner's appeal against this decision was dismissed by the Customs, Excise & Service Tax Appellate Tribunal. Subsequently, the Central Government introduced the "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019." The petitioner applied for waiver of interest under this scheme, which was rejected. The High Court noted that the petitioner had paid the entire excise duty before the deadline specified in the scheme, making them eligible for interest waiver.

2. The petitioner contended that they had paid in excess of the demand under the scheme and thus were entitled to interest waiver. The petitioner relied on a Circular issued by the Ministry of Finance, Government of India, and a judgment of the High Court of Madhya Pradesh to support their argument. On the other hand, the respondents argued that since the petitioner had paid the entire excise duty, they were not entitled to interest waiver. However, the High Court found that the Circular clarified that if the tax dues were paid in full before the application, the declarant was eligible for interest waiver. As the petitioner had met this condition, the rejection of their application for interest waiver was deemed unsustainable.

Judgment:
The High Court allowed the writ petition, quashing the impugned order rejecting the petitioner's application for waiver of interest. The respondents were directed to accept the petitioner's Declaration and issue a Discharge Certificate waiving the interest levied under Section 11AB of the Act.

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