Sabka Vishwas Scheme computation: pre-deposit must be adjusted after relief is calculated on net tax dues.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, relief under Section 124(1)(c) had to be computed on the net tax dues first, and any pre-deposit or deposit was to be adjusted separately under Section 124(2) only at the stage of issuing the payable statement. The Scheme's use of "amount in arrears" and "amount of duty," read with the CBIC circular, supported this sequence of calculation and adjustment. The Designated Committee's Form SVLDRS-3 computation was therefore incorrect because it overstated the amount payable by deducting the pre-deposit at the wrong stage. The petitioner's computation was accepted, and the impugned determination was set aside to the extent of the excess demand, with consequential discharge documents to follow.

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Issues: Whether, under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, the pre-deposit made at the stage of appeal was to be deducted only after computing the relief under Section 124(1)(c), and whether the amount determined by the Designated Committee in Form SVLDRS-3 was correct.

Analysis: The Scheme distinguished between the computation of relief on the tax dues and the later adjustment of any pre-deposit or deposit. The expression "amount in arrears" and the definition of "amount of duty" showed that the relief under Section 124(1)(c) had to be applied to the net outstanding tax dues. Section 124(2) required any pre-deposit to be deducted only while issuing the statement indicating the amount payable. The clarification issued by the CBIC in the governing circular supported this reading by treating pre-deposits as deposits to be adjusted after the relief computation and not as amounts to be first appropriated from the gross demand.

Conclusion: The amount computed by the Designated Committee was incorrect. The petitioner was liable to pay only the amount worked out after applying the statutory relief and thereafter adjusting the pre-deposit, and the petitioner's calculation was accepted.

Final Conclusion: The impugned determination under the Scheme was set aside to the extent it had overstated the amount payable, and the authorities were directed to give effect to the correct computation and issue the consequential discharge documents.

Ratio Decidendi: Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, relief under Section 124(1)(c) must be calculated on the net tax dues, while any pre-deposit or deposit is to be adjusted separately under Section 124(2) at the stage of issuing the payable statement.

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