Sabka Vishwas discharge certificate denied despite timely payment and scheme extension, with further interest and penalty demand set aside.

Payment of the declared arrears within the notice period, coupled with the extension of the Sabka Vishwas scheme up to 29.09.2020, meant the subsequent demand for further interest and penalty could not be sustained. The HC set aside the impugned order and directed issuance of Form SVLDRS-4 discharge certificate.

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Issues: Whether the order demanding further arrears towards interest and penalty under the Sabka Vishwas scheme, after the declared amount had been paid within time and the scheme stood extended, was sustainable, and whether the petitioner was entitled to issuance of Form SVLDRS-4 discharge certificate.

Analysis: The declared arrears amount was paid within the time mentioned in the notice. The scheme was extended up to 29.09.2020, and the extension was not taken into account while passing the impugned order. In these circumstances, the subsequent demand towards interest and penalty could not be sustained.

Conclusion: The impugned order was set aside and the respondents were directed to issue Form SVLDRS-4 discharge certificate.

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