The relief calculated under Section 124(1) of the Finance Act is subject to the condition that any amount paid as pre-deposit at any stage of appeal proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit shall be deducted when issuing the statement indicating the amount payable by the declarant.

JUDGMENT :

Heard learned counsel for the parties.

2. By filing this writ petition, the petitioner-company has prayed for issuance of writ of certiorari for quashing the Form SVLDRS No. 3 L050320SV300423 dated 05.03.2020 issued by the respondents and also issue a writ of mandamus directing the respondents to issue fresh Form No. 3 and adjust the amount of Rs. 3,19,69,680/- towards deposit already made. In the alternative, the petitioner has also prayed to direct respondent no. 2 to refund the amount of Rs. 3,19,69,680/- with 18% interest per annum to him.

3. The short question that arises for determination in this writ petition is “whether the amount paid by the petitioner, under protest, towards interest , prior to issuance of show cause shall be considered as pre-deposit while disposing his application for waiver under ‘Sabka Vikas (Legacy Dispute Resolution) Scheme, 2019’ which was issued under Section 24 of the Finance Act.

4. The learned counsel for the petitioner would submit that a Division Bench of Punjab and Haryana High Court at Chandigarh, in the case of Schlumberger Solutions Pvt. Ltd. vs. Commissioner Central GST & Ors. in CWP-6845-2020 on dated 30.11.2021 has already decided this question. The only difference is that in the earlier decided case of the Punjab and Haryana High Court, the pre-deposit also included a penalty in addition to interest.

5. We have carefully gone through the judgment and it is submitted by the learned counsel for the petitioner that no special leave petition has been preferred against this order by the Central GST Department to the Supreme Court. On the other hand, Mr. Shobhit Saharia, the learned counsel appearing for the respondents would submit that there are some technical issues in this case in view of the fact that Form no. 1, 2 and 3 are issued and are auto populated having life span of 30 days and by the time stay order was granted 30 days was over and, therefore, relief the petitioner has prayed cannot be granted. However, it is not disputed by the learned counsel for the respondents that originally scheme was of 31.03.2020 which was later on extended till 30.06.2020.

6. It is appropriate to take note of Section 124 of the Finance Act, 2019, which reads as follows:-

124. (1) Subject to the conditions specified in subsection (2), the relief available to a declarant under this Scheme shall be calculated as follows:—

(a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,—

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty;

(c) where the tax dues are relatable to 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 June, 2019 is— (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues.

(2) The relief calcul