False disclosure under the legacy dispute scheme can void finality and permit further proceedings despite a discharge certificate.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, a declaration filed in the wrong category while investigation was already pending was treated as containing a material falsehood. Because voluntary disclosure was unavailable once enquiry, investigation or audit had begun, the declaration fell within the statutory exception to finality in Section 129(2)(c). The discharge certificate was therefore not conclusive, and it did not bar further proceedings where a material particular in the declaration was later found false within one year. The amount paid under the Scheme was also stated to be non-refundable under Section 130(1)(b).

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Issues: Whether a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 filed under the wrong category and containing a false material particular could be treated as vitiated, and whether the discharge certificate issued thereon barred further proceedings under the Scheme.

Analysis: The Scheme restricts eligibility under Section 125, and a person who has already been subjected to enquiry, investigation or audit cannot proceed under the voluntary disclosure category. The declaration in question was made while investigation was already pending and the wrong category was selected. That incorrect categorisation was held to be a material falsehood. Under Section 129(1), a discharge certificate is conclusive, but Section 129(2)(c) creates an exception where, in a voluntary disclosure case, any material particular furnished in the declaration is later found false within one year of issuance of the certificate. In such a situation, the declaration is deemed never to have been made and proceedings under the indirect tax law may be instituted. The Court also noted that amounts paid under the Scheme are not refundable under Section 130(1)(b).

Conclusion: The declaration was vitiated by non-disclosure of material particulars and the statutory exception under Section 129(2)(c) applied. The discharge certificate did not prevent the Department from proceeding with the show cause notice.

Final Conclusion: The writ appeal succeeded, the writ court's order was set aside, and the Department was permitted to adjudicate the show cause notice in accordance with law.

Ratio Decidendi: Where a declaration under the settlement scheme is filed under an incorrect category despite ongoing investigation, the false disclosure of that material particular attracts the statutory exception to finality, and the declaration is treated as never having been made.

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