Wholesale rejection of Sabka Vishwas applications without merit-based examination violates Section 125(1)(h) principles

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....The HC set aside respondents' wholesale rejection of petitioner's applications under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Respondents rejected all applications solely because petitioner manufactured cigarettes, citing Section 125(1)(h) of Finance (No. 2) Act, 2019 read with Fourth Schedule to Central Excise Tariff Act, 1985. The HC held that while tobacco products may be excluded from scheme benefits, respondents failed to demonstrate justification for rejecting applications concerning goods or input credits outside the Fourth Schedule without merit-based examination. The court directed authorities to reconsider petitioner's applications afresh, keeping all contentions regarding merits and limitations open for determination. Petition allowed.....