TaxTMI 
TaxTMI 
2020 (12) TMI 283
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....d counsel for Respondent No1 and Sri B.K. Singh Raghuwanshi, learned counsel for Respondent Nos.2 and 3. 2. This writ petition has been filed praying for the following reliefs: "(a) "certiorari" quashing and setting aside the circular dated 25.09.2019 (Annexure No.8) passed by the Designated Committee. (b) "certiorari" quashing and setting aside the SVLDRS-3 dated 1.2.2020 (Annexure No.6) passed by the Designated Committee. (c) mandamus directing the Designated Committee to accept the SVLDRS-1 Declaration (Annexure No.3) filed by the petitioner. (d) Declaration that no amount of tax or duty or impost is payable by the petitioner. (e) Mandamus directing the Respondents to grant the relief of re....
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....t a substantial discount. Section 124 Finance (No.2) Act 2019 provides the slabs of tax arrears and the discount slabs in percentage for payment by an applicant/declarant to settle the dispute. Section 125 provides that all persons shall be eligible to make a declaration under the Scheme except those mentioned in Clauses (a) to (h). Section 126 empowers the designated Committee to verify the correctness of the declaration made by the declarant under Section 125 in the manner as may be prescribed. Section 127 of the Act empowers the designated Committee to issue statement indicating the amount payable by the declarant and in the event the amount estimated by the designated Committee exceeds the amount declared by the declarant then the desig....
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....which has been enacted with the object and purpose to minimise the litigation and to realise the arrears of tax by way of settlement at discounted amount in an expeditious manner. In other words the scheme is a step towards the settlement of outstanding disputed tax liability. 8. Provisions of Sections 121(c)/(d)/(e) and 124 are relevant for the purpose of present controversy, which are reproduced below: "121. In this Scheme, unless the context otherwise requires,- (a) x x x (b) x x x (c) "amount in arrears" means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of- (i) no appeal having been filed by the declarant against an order or an or....
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....o an amount in arrears and, (i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent of the tax dues; (ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent of the tax dues; (iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,- (A) rupees fifty lakhs or less, then, sixty per cent of the tax dues; (B) amount indicated is more than rupees fifty lakhs, then, forty per cent of the tax dues; (d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of J....
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....he aforesaid amount of Rs. 1,74,66,374/- is the "amount in arrears" under Section 121(c) of the Act. 10. The words "amount payable" has been defined in Section 121 (e) of the Act. It means the amount calculated by the authority as the amount of tax dues less the tax relief. Thus, the amount of tax dues being the amount in arrears in terms of provisions of Section 124(1)(c) read with Section 121(c) of the Finance (No.2) Act, 2019 is the amount of duty which is in arrears as per order in original dated 29.03.2019 i.e. Rs. 1,74,66,374/-. Accordingly, it has been reflected in the SVLDRS-3, by the designated authority who computed the amount of tax relief under Section 124(1)(c) at Rs. 69,86,549.60. Thus, the balance amount as estimated amoun....
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....13. The amount in arrears as per order in original dated 29.03.2019 is Rs. 1,74,66,374/-. The relief under Section 124 of the Act, 2019 "Sabka Vishwas Scheme" has been computed on the aforesaid amount in arrears. Accordingly, the Tax relief under Section 124(1)(c) has been given to the petitioner for Rs. 69,86,549.60. The balance amount of Rs. 1,04,79,824.40 determined by the designated authority and payable by the petitioner under Section 127, is in accordance with the provisions of Section 124(1)(c) read with Section 121(c)/(d) and (e) of the Act which does not suffer from any error of law. 14. From the facts and the legal provisions as aforenoted neither the circular is in breach of the provisions of Section 124(1)(c) or sub-sectio....