Redemption fine under Sabka Vishwas Scheme was held eligible for settlement, and linked notices were treated as one dispute.

Redemption fine arising from confiscation and seizure proceedings under excise law was held to fall within the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, because it is a consequence of duty default and a payment in lieu of confiscation; it was therefore eligible for relief and a discharge certificate. Notices stemming from the same search, seizure, investigation and confiscation were treated as part of one composite dispute, so Scheme benefit could not be confined to only one notice while the connected demand remained unresolved. The declaration was accordingly to be accepted and discharge issued to bring the dispute to finality.

---

---

Issues: (i) Whether redemption fine arising out of confiscation and seizure proceedings is covered by the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 so as to entitle the declarant to relief and discharge certificate; (ii) Whether the two show cause notices arising from the same investigation and proceedings could be treated separately for the purpose of grant of discharge under the Scheme.

Issue (i): Whether redemption fine arising out of confiscation and seizure proceedings is covered by the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 so as to entitle the declarant to relief and discharge certificate.

Analysis: The Scheme provides relief against tax dues, duty, interest and penalty and contemplates final settlement through issuance of a discharge certificate. The Court held that in excise matters, seizure and confiscation are consequences of non-payment of duty and redemption fine is a payment in lieu of confiscation. On a plain reading of the Scheme, together with the CBIC flyer and FAQs describing waiver of interest, penalty and fine, redemption fine could not be excluded from the Scheme merely because it is not separately named. The Court also relied on the consistent view taken by other High Courts that redemption fine is encompassed within the relief contemplated by the Scheme.

Conclusion: Yes. Redemption fine is covered by the Scheme and the petitioners were entitled to the benefit of discharge under it.

Issue (ii): Whether the two show cause notices arising from the same investigation and proceedings could be treated separately for the purpose of grant of discharge under the Scheme.

Analysis: The Court found that both notices arose out of the same search, seizure, investigation and confiscation proceedings, and that the second notice was in continuation of the first. Since the duty demand, penalty exposure and appropriation of the deposited amount were all linked to the same underlying dispute, it was not appropriate to confine the Scheme benefit to only one notice while leaving the other unresolved. The Scheme is intended to bring finality to the dispute as a whole and not to keep a consequential component pending.

Conclusion: The two notices were treated as part of the same dispute, and the discharge benefit could not be restricted to only one of them.

Final Conclusion: The petitions succeeded, the rejection of the declaration in respect of the confiscation notice was set aside, and the authorities were directed to issue the discharge certificate for the remaining notice as well, thereby bringing the legacy excise dispute to an end.

Ratio Decidendi: Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, redemption fine in confiscation proceedings is a consequence of excise duty default and falls within the scheme's relief for final settlement of duty-related disputes unless expressly excluded.

---