CENVAT credit denial on unstated grounds under Sabka Vishwas Scheme was held erroneous; discharge certificate proceedings to follow.

CENVAT credit could not be denied in determining tax dues under the Sabka Vishwas Scheme on a ground not stated in the show cause notice or on an unstated condition not found in Rule 9 of the CENVAT Credit Rules, 2004. The court noted that, for the relevant period, there was no time limit for availment of credit and that later restrictions did not apply. It also held that the Designated Committee had to determine dues under Section 127 on the declarant's claim and give an opportunity of hearing if its estimate differed. The denial was erroneous, the order was quashed, and discharge certificate proceedings were directed to follow.

---

---

Issues: Whether the petitioner's claim for CENVAT credit was wrongly denied while determining tax dues under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and whether the impugned order deserved to be set aside.

Analysis: The earlier remand confined consideration to whether CENVAT credit had been validly availed. The impugned order itself recorded that, for the relevant period, there was no time limit for availment of credit and that the restriction introduced later did not apply. Rule 9 of the CENVAT Credit Rules, 2004 does not make receipt of goods at the registered premises a condition for credit, and the Committee could not deny credit on a ground different from the one set out in the show cause notice. The Scheme also contemplates determination by the Designated Committee under Section 127, including hearing where its estimate differs from the declarant's.

Conclusion: The denial of CENVAT credit was erroneous and the impugned order was liable to be set aside. The petitioner was entitled to consequential action on the declaration and issuance of the discharge certificate under the Scheme.

Final Conclusion: The writ petition succeeded, the impugned order was quashed, and the matter was directed to proceed on the petitioner's declaration for issuance of the discharge certificate.

Ratio Decidendi: Where a statutory scheme requires determination of tax dues on the basis of a declarant's claim, credit cannot be denied on a ground not proposed in the show cause notice or on an unstated requirement not found in the governing credit rules.

---