Scheme relief must be computed on adjudicated tax dues, not higher show cause notice figures, where litigation was pending.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, tax dues for relief purposes were to be computed with reference to the crystallised liability confirmed in the order-in-original, not the higher figure in the show cause notice. Because the adjudicated duty remained within the Scheme's monetary threshold and the matter related to pending litigation, the declarant qualified for 70% relief under Clause 124. The respondent's attempt to base computation on the larger proposed demand was unsustainable, and the correct Scheme benefit had to be granted on the amount finally confirmed in adjudication.

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Issues: Whether, for determining relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, the tax dues had to be computed with reference to the amount confirmed in the order-in-original rather than the higher amount mentioned in the show cause notice, and whether the declarant was entitled to 70% relief under Clause 124.

Analysis: The matter had travelled through adjudication and appeal, and the order-in-original had confirmed recovery only to the extent of Rs. 4,86,628/-, while the appellate authority had partly accepted the credit claims and remanded one head. In that background, the declaration was correctly treated as relating to pending litigation. Clause 124 of the Scheme grants 70% relief where the tax dues relate to a show cause notice or pending appeal and the amount of duty does not exceed Rs. 50 lakhs. The declarant was justified in adopting the amount crystallised in the order-in-original as the basis for computation, especially when that figure was lower than the amount demanded in the show cause notice and the Scheme conditions were otherwise satisfied.

Conclusion: The petitioner was entitled to have the relief computed on the basis of the amount confirmed in the order-in-original, and the respondent's reliance on the higher show cause notice amount was unsustainable.

Final Conclusion: The impugned denial of the correct Scheme benefit was set aside, and the petitioner was held entitled to the quantified relief under the Scheme.

Ratio Decidendi: Where tax dues under the Scheme are relatable to pending litigation and the amount confirmed in adjudication is within the monetary threshold, relief must be computed on the crystallised duty liability rather than the higher amount originally proposed in the show cause notice.

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