Quantification under Sabka Vishwas Scheme includes identifiable liability in returns and notices, making rejection unsustainable.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, service tax dues are treated as quantified where the liability is written and identifiable on or before 30.06.2019, including through ST-3 returns, audit material and a show cause notice. The Madras High Court found that the amounts disclosed in the declaration and in the notice were substantially the same, with only marginal variation, and that the petitioner had met the Scheme's quantification requirement. The rejection of the declaration, and the consequential order in original, were therefore unsustainable, and the petitioner was held entitled to the Scheme benefit.

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Issues: Whether the petitioner was entitled to the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on the ground that the service tax dues had been quantified on or before 30.06.2019, and whether the rejection of the declaration and the consequential order in original were unsustainable.

Analysis: The amount disclosed in Form SVLDRS-1 and the amount reflected in the show cause notice were found to be substantially the same, with only a marginal variation. The Court held that the petitioner had already filed ST-3 returns after initiation of investigation, and those returns, along with the audit and subsequent notice, constituted quantification of duty liability within the meaning of the Scheme. The Board circulars clarified that for cases under investigation or audit, the benefit of the Scheme was available where duty dues had been quantified and communicated on or before 30.06.2019. On that basis, the petitioner satisfied the eligibility condition under the Scheme, and the rejection of the declaration could not be sustained.

Conclusion: The petitioner was entitled to avail the Scheme, and the rejection of the declaration as well as the confirmation order were held unsustainable.

Ratio Decidendi: For purposes of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, duty dues are treated as quantified when there is a written and identifiable communication of the liability on or before the cutoff date, including where the liability is reflected in returns and related proceedings with only marginal variation.

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