JUDGMENT :

1. Heard Sri Suyash Agarwal, learned counsel for the petitioner and Sri R.C. Shukla, learned counsel for the revenue.

2. Present writ petition raises challenge to the order dated 05.05.2020 passed by respondent no.1-Designated Committee rejecting the declaration filed by the petitioner on SVLDRS-1, seeking settlement of its dispute, under the provisions of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (in short the 'Scheme').

3. Undisputed facts of the case are, a search was conducted in the case of the petitioner under the provisions of the Central Excise Act, 1944, (hereinafter referred to as the Act) on 10.02.2016 at the business and other premises of the petitioner and its directors etc. In the ‘Panchnama’ drawn on 10.02.2016 itself, an allegation of short payment of Central Excise duty (against shortage of stock) Rs. 2,18,516/-was made. A copy of the same is annexed as Annexure No. 1 to the writ petition. Pursuant to the search, an investigation (under the Act), became pending against the petitioner and its directors. During that investigation, on 13.05.2016, the statement of Dinesh Garg, a director of the petitioner-company came to be recorded. As per Annexure-A to that statement duty payment Rs. 45,38,231/-was avoided upon clandestine removal of excisable goods. Its copy is annexed as Annexure No. 3 to the writ petition. Relevant to our discussion, the contents of question nos. 3 and 7 together with the answers furnished by the said Dinesh Garg, in that statement, read as under:

“Q-3. On the basis of print outs of sales register taken from the laptop and sales register submitted by your accountant Shri Gaurav Tyagi on 10.02.2016 in reply of Question No.4 of his statement, a detail have been prepared containing date wise entries of sales made to different buyers during the period 01.04.2015 to 09.02.2016 in Annexure-A. Please see the said Annexure-A and explain about the entries?

Ans: I have seen the Annexure-A and put my dated signatures on it. I have also perused the sales detail given in our sales register provided by Shri Gaurav Tyagi on 10.02.2016. The said Annexure-A contains the sales details made to different parties by our manufacturing unit M/s Magma Industries Ltd., during the period 01.04.2015 to 09.02.2016. In some case where Bill issued has been shown, we have issued proper bills and account for the said sale in our ledgers. Against sales in few cases bills for lesser amount have been issued due to adjustment of commission to commission agent and rate differences. Against rest entries we have neither issued any Sale Bill nor account for the said sales in our ledgers for payment of central excise duty. I also want to state that the name of G.S. Pharma has wrongly mentioned by our Accountant in the said sales register and party ledger, whereas the actual sale was made to M/s Trends Remedies Pvt. Ltd., Roorkee on the sale bills. These facts may also be checked.

Q-7. What do you want to state about the central excise duty liability on the sales done by your company without issuing bills and without payment of duty?

Ans: I admit that sales of finished goods shown against other entries except the sales made to M/s S.S. Enterprises, Gulzar (Kabadi) have been done by our unit to different parties without payment of Central Excise duty and without entry in the statutory records. We have sold empty old and used drums, in which we purchased raw material to M/s S.S. Enterprises, Gulzar (Kabadi) and Israr (Kabadi) and we have neither issued any bill nor paid any central excise duty since these are not our manufactured goods. I admit the duty liability in respect of other clearances shown in the said Annexure-A, Which have been done without issuing sales bills and without payment duty.”

4. The amount of excise duty as per Annexure-A to that statement is Rs. 45,38,231/-. Yet, that investigation remained pending. Before a show-cause-notice could be issued, the Scheme was introduced by Finance Act No. 2 of