Written admission of duty liability during audit can satisfy quantification under Sabka Vishwas, making rejection unsustainable.

A written admission of service tax liability during audit before 30.06.2019 was treated as "quantified" under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, because quantification means written communication of the duty payable. The court relied on the assessee's recorded admission and a beneficial CBIC clarification stating that written communication includes liability admitted during audit and audit reports. On that basis, the Revenue could not reject the declaration by adopting a narrower interpretation of quantification, and the rejection order was held unsustainable.

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Issues: Whether a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was maintainable where the assessee's liability had been admitted in writing during audit before 30.06.2019, and whether such admission satisfied the requirement of the amount being "quantified" within the Scheme.

Analysis: The Scheme disqualifies only those cases where, after enquiry, investigation, or audit, the amount involved had not been quantified on or before 30.06.2019. "Quantified" is defined as a written communication of the amount of duty payable. The record showed that the assessee had admitted the service tax liability before the audit party prior to the cut-off date, and that admission was recorded in writing. The CBIC, exercising its power to issue instructions for proper administration of the Scheme, clarified that written communication includes duty liability admitted during audit and audit reports. Since the clarification was beneficial and consistent with the Scheme, the Revenue could not reject the declaration by insisting on a narrower view of quantification.

Conclusion: The declaration was valid and maintainable, and the rejection order was unsustainable.

Final Conclusion: The impugned rejection was set aside and the matter was remitted for fresh consideration in accordance with the Scheme, treating the assessee's liability as quantified before the cut-off date.

Ratio Decidendi: For the purpose of the Scheme, a written admission of duty liability recorded during audit before the statutory cut-off date constitutes quantification, and a beneficial CBIC circular clarifying that position binds the Revenue authorities.

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