Prior quantification under Sabka Vishwas Scheme prevents disqualification despite later duty quantification differences

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, a declaration cannot be rejected merely because a later show cause notice quantified duty differently, if the liability had already been quantified before 30 June 2019. The petitioner's pre-30 June 2019 statement under summons and disclosure of service tax payment constituted sufficient prior quantification. The Scheme disqualifies only cases where no such quantification existed by the cut-off date, and it also envisages verification and a counter-offer by the designated authority. The Bombay HC held the rejection unsustainable and required acceptance of the declaration and further processing under the Scheme.

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Issues: Whether the petitioner's declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was liable to be rejected on the ground that the duty demand had not been quantified on or before 30 June 2019.

Analysis: The petitioner's statement recorded pursuant to summons before 30 June 2019 contained an admission of liability, and the petitioner had also informed the department of the service tax paid prior to that date. The Scheme disqualifies a declarant only where there is no quantification on or before 30 June 2019. A later show cause notice or a difference between the amount stated in the declaration and the amount in the notice does not, by itself, negate prior quantification. The Scheme also contemplates verification of figures and a counter-offer by the designated authority, which stage was not reached because the declaration was rejected at the threshold.

Conclusion: The rejection of the petitioner's declaration was unsustainable. The petitioner was eligible to avail the Scheme, and the authorities were bound to accept the declaration and complete the consequential processing under the Scheme.

Ratio Decidendi: For the purpose of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, prior quantification of duty before 30 June 2019 is sufficient to avoid disqualification, and a later assessment or a difference in figures does not by itself make the declarant ineligible.

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