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2021 (4) TMI 317 - HC - Central Excise


Issues:
1. Eligibility for benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
2. Interpretation of provisions of Sections 121(c) and 125(1)(d) of the Finance Act, 2019.

Analysis:

Issue 1: Eligibility for benefits under the Sabka Vishwas Scheme, 2019
The petitioner sought benefits under the Scheme of 2019 for a refund amount of ?26,80,834, claiming it to be an amount in arrears under Section 121(c) of the Finance Act, 2019. The petitioner had a history of disputes regarding excise duty, penalties, and refunds dating back to 1997. Despite various legal proceedings and refund orders, the matter culminated in a final demand for the erroneously refunded amount. The petitioner argued that since the refund liability had attained finality, they should be eligible for benefits under the Scheme of 2019. Conversely, the respondents contended that the Scheme was not applicable to cases of erroneously made refunds. The court analyzed the provisions of Sections 121(c) and 125(1)(d) of the Act to determine the petitioner's eligibility.

Issue 2: Interpretation of provisions of Sections 121(c) and 125(1)(d) of the Finance Act, 2019
The court examined the definitions of 'amount in arrears' under Section 121(c) and the disqualifications under Section 125(1)(d) of the Act. Section 121(c) defines 'amount in arrears' as duty recoverable under indirect tax enactment in specific situations, excluding erroneous refunds. Section 125(1)(d) disqualifies declarants who have been issued a show cause notice for an erroneous refund or refund. The court noted that the petitioner had received a show cause notice for the erroneously refunded amount, leading to a final demand order. Despite the petitioner's arguments, the court concluded that the petitioner was ineligible for benefits under the Scheme due to the specific disqualification clause in Section 125(1)(d). The court emphasized that the finality of the demand for the erroneous refund did not change the ineligibility under the Act. Consequently, the court dismissed the writ petition, ruling against the petitioner's claim for benefits under the Scheme of 2019.

In conclusion, the court's judgment clarified the ineligibility of the petitioner for benefits under the Sabka Vishwas Scheme, 2019, based on the specific provisions of the Finance Act, 2019.

 

 

 

 

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