Revenue Directed to Issue SVLDRS-4 Discharge Certificate; Petitioner Eligible for Sabka Vishwas Scheme Benefits.

The HC ruled in favor of the petitioner, directing the revenue to issue the SVLDRS-4 discharge certificate within four weeks. The court determined that the petitioner was eligible for the Sabka Vishwas Scheme, allowing the adjustment of the entire disputed tax amount through Input Tax Credit, as per the scheme's provisions and relevant circulars.

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Issues:
Interpretation of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 for adjustment of wrongly availed Input Tax Credit (ITC) and issuance of discharge certificate SVLDRS-4.

Analysis:
The petitioner, represented by a senior advocate, sought a mandamus to command the revenue to issue the SVLDRS-4 discharge certificate. The petitioner had applied under the Sabka Vishwas Scheme, indicating payment of the entire demand by adjustment of the ITC. The revenue disputed the eligibility of the petitioner to benefit from the scheme, alleging that the petitioner did not make the required deposit. The revenue argued that the petitioner was required to pay 50% of the litigated amount under the SVLDR Scheme, but the petitioner claimed to have paid the entire disputed amount. The revenue contended that the petitioner wrongly availed the ITC and was not entitled to the scheme's benefits. The court examined the relevant sections of the Finance Act and circulars issued by the revenue, emphasizing the binding nature of such circulars.

The circular explained that the scheme aimed at resolving disputes and providing amnesty to those who failed to discharge their tax liability correctly. The court noted that the scheme's ambit was wide and that eligibility to make a declaration under the scheme was not in question for the petitioner. The petitioner's application under the scheme was related to the demand under the show cause notice, intending to adjust the entire demand by ITC without claiming amnesty. The circular provided for adjustment of tax paid through input credit in disputed matters, which was to be determined by the designated committee for final payment under the scheme.

The court found that the petitioner's case fell under the clause in the circular regarding adjustment of tax paid through input credit in disputed matters. The revenue was obligated to cause the adjustment, leaving the balance tax to be paid under the scheme as nil. Therefore, the court allowed the writ petition and directed the revenue to issue the SVLDRS-4 discharge certificate within four weeks. The judgment disposed of the writ petition, ruling in favor of the petitioner based on the interpretation of the scheme and circular provisions.

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