The Delhi High Court has directed centre to “scrupulously” follow the provisions of Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 meant for settlement of excise and service tax disputes.
“We expect the respondent (Centre) to scrupulously follow the provisions of the scheme and the Finance Act,” a division Bench comprising of Chief Justice DN Patel and Justice C Hari Shankar said.
The Court was hearing a Writ Petition challenging a government circular which purportedly provided the benefits of the scheme to tax disputes where the final hearing has taken place on or before June 30.
The scheme, enacted for settlement of disputes pertaining to levies subsumed in the Goods and Service Tax (GST), provides substantial relief to taxpayers in the form of full waivers of interest, penalties and fines as well as complete amnesty from prosecution proceedings.
While dismissing the Petition, the court upheld the circular, which according to the plea also covered pending cases in the “arrears” category under the scheme, saying it was “not prima facie violative of the scheme or the Finance Act”.
The petition had contended that making the scheme applicable to disputes, where the final hearing has taken place on or before June 30 or where the tax amount has not been quantified or communicated before that date, will cause a substantial loss to the exchequer.
The plea had also contended that providing relief in disputes, where the final hearing was over on or before June 30 or where demand was not quantified or communicated prior to that date, will lead to the government losing 50-60 per cent of tax revenues as well as the entire amount of penalty and interest.
