Pre-deposit under SVLDRS-2019 set off against confirmed tax; Rs.15.35L deducted, Rs.3.63L payable at 12% from expiry

Whether a pre-deposit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is available to be set off against confirmed tax: HC held that Section 124(2) permits appropriation of amounts pre-deposited during investigation against tax finally confirmed; consequently the pre-deposit of Rs.15,35,735 is deductible from the confirmed liability of Rs.18,99,158.40, leaving a payable balance of Rs.3,63,419. The court corrected mutually inconsistent quantifications in Forms SVLDRS-1 and SVLDRS-3, directed payment of Rs.3,63,419 within 30 days with 12% interest from expiry of Form SVLDRS-2, and allowed credit if prior lesser payment made.

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Issues involved:
The judgment involves the consideration of whether the pre-deposited amount by the petitioner should be set off against the tax amount confirmed by the Assistant Commissioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Summary:

Issue 1 - Pre-deposited amount deduction:
The petitioner filed a Writ Petition against the order in SVLDR-3, seeking consideration for the deduction of the pre-deposited amount prior to filing the application under the SVLDRS Scheme, 2019. The petitioner quantified the tax payable as Rs. 3,53,803, while the respondent determined it as Rs. 12,75,256. The key question was whether the pre-deposited amount of Rs. 15,35,755 should be set off against the confirmed tax amount of Rs. 47,23,896.

Issue 2 - Relief under SVLDR Scheme:
The petitioner referred to relevant provisions of the Sabka Vishwas Scheme, arguing for relief based on the amount in arrears and the relief percentages specified under Section 124(1)(c) of the Finance Act, 2019. The petitioner claimed entitlement to a 60% relief on the confirmed tax amount, leading to a required payment of Rs. 18,99,158.40, subject to deduction of the pre-deposited amount.

Issue 3 - Correct quantification of payable amount:
The Court found discrepancies in the amounts quantified by both the petitioner and the respondent in Forms SVLDRS-1 and SVLDRS-3, respectively. The correct payable amount was determined to be Rs. 3,63,419 after deducting the pre-deposited amount, rather than the incorrect figures initially presented.

Conclusion:
The Court ordered the petitioner to pay the corrected amount within 30 days, along with interest, and settled the case in accordance with the provisions of the Finance Act, 2019 and the Sabka Vishwas Scheme, 2019. The writ petition was disposed of with observations and no costs, with connected miscellaneous petitions closed.

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