2024 (11) TMI 726

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....lient. He submits, there stood issued show cause notice (SCN) dated 15th October, 2015 demanding Rs. 5,19,28,080/- as wrongly availed Input Tax Credit (ITC) during financial years 2010-11 to 2013-14. Adjudication pursuant to the SCN remained pending, when there was enactment by Parliament introducing Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by Finance (no. 2) Act, 2019. His client applied under the scheme on prescribed form SVLDRS-1. In so applying his client indicated payment of entire demand by adjustment of the ITC, disputed by revenue under said SCN. On query made he submits, his client did not opt to claim any part of the ITC as relief under the scheme. It being for purpose of resolution and amnesty, the adjustment ....

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....nstant case, availing of ITC at Rs. 5,19,28,080/- has been questioned by the Department and hence, the SCN was issued. Petitioner did not deposit the tax. The matter was pending for adjudication. Petitioner opted for relief under SVLDR Scheme, 2019, in category of 'Litigation' and was therefore required to pay 50% of the litigated amount. Petitioner's claim that it paid the entire disputed amount is a blatant lie. In the meantime adjudication order dated 19th August, 2024 has been passed confirming the demand, imposing interest and penalty. No interference is warranted. The writ petition be dismissed. 4. We have perused relevant sections in chapter-V of the Finance Act. Section 120 introduced the scheme. It was duly notified to come into....

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....as pre-deposit during appellate proceedings or as deposit during enquiry, investigation or audit [Sections 124 (2) and 130 (2) refer]. In certain matters, tax may have been paid by utilizing the input credit, and the matter is under dispute. In such cases, the tax already paid through input credit shall be adjusted by the Designated Committee at the time of determination of the final amount payable under the Scheme." (emphasis supplied) 8. As there is no dispute regarding eligibility of petitioner to have applied under the scheme and the application was in respect of the demand under the SCN, petitioner opted to indicate payment of the entire demand by adjustment and not claim any amnesty. Above reproduced clause in the circular....