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TMI Blog2022 (6) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... lso undertakes trading on its own account as well. 2. In 2019, Government of India introduced a scheme called "Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 (the scheme) under Chapter V of the Finance Act 2019 (Finance Act). The scheme was applicable to various enactments as mentioned under Section 122 of the Finance Act and that included the Finance Act 2004, Finance Act 2007, Finance Act 2015 and Finance Act 2016. Under the scheme, all persons were eligible to make a declaration to settle under the Scheme except those specifically excluded under Section 125 of the Finance Act. As per the scheme, the eligible person would make a declaration under the scheme, which shall be considered by the designated committee under Section 126 of the Finance Act and the designated committee would issue a statement under Section 127 of the Finance Act. How much will be the tax due and payable under the scheme is provided for under Section 123 of the Finance Act. 3. Petitioner had filed such declaration under the scheme. The declaration has been accepted but according to petitioner, respondents have not given credit to certain amounts which, according to petitioner, has been paid. If suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nish CENVAT credit register showing payment of Rs.5,98,45,284/- at the time of filing reply to the show cause notice or at the time of hearing and accordingly, the contention of adjustment of Rs.5,98,45,284/- against alleged tax demand was dismissed. Aggrieved by the said order, petitioner filed an appeal before the Customs Excise Service Tax Appellate Tribunal (CESTAT). This appeal was pending disposal on 30th June 2019. This date of 30th June 2019 is relevant because under Sub Section (1) of Section 125 of the Finance Act, persons who have filed the appeal before the Appellate Forum and such appeal has been heard finally on or before 30th June 2019, were not eligible to make a declaration. Since petitioner's appeal was still pending as on 30th June 2019, petitioner was entitled to make declaration under the Scheme. Petitioner's eligibility is not in question. 6. Petitioner, in view of the introduction of the scheme decided to take advantage of the scheme because the scheme, inter alia, provides waiver of partial tax demand and for certain immunities from penalty, interest or any other proceedings including prosecution in respect of specified legal disputes pending disposal as on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er giving the declarant a personal hearing. 8. It is petitioner's case that in the declaration, petitioner had mentioned that the duty amount payable was Rs.11,29,74,928/- and the amount deposited was Rs.8,73,19,575/-. Therefore, as per Section 124 of the Finance Act, petitioner was to pay only 50% of Rs.11,29,74,928/- and since petitioner had already paid Rs.8,73,19,575/-, no further amount was payable by petitioner. Petitioner also agrees that it is not entitled to any refund under the Finance Act of the amount of Rs. 3,08,32,111/- being the difference between Rs.8,73,19,575/- and Rs.5,64,87,464/- which is 50% of the duty payable. 9. Respondent no.3, which is the designated committee, issued Form No.3 being a statement under Section 127 of Finance Act, by which it accepted the tax dues was Rs.11,29,74,928/- as declared by petitioner. 50% tax relief petitioner was entitled was Rs.5,64,87,464/-. But respondent no.3 gave credit of only Rs.2,39,66,528/- as paid by petitioner and declared that petitioner was to pay the balance amount of Rs.3,25,20,936/-. Prior to issuance of statement in Form-3, respondent no.3 had given a personal hearing to petitioner, in which petitioner explaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purport of the scheme. Mr. Jetly submitted that petitioner is not rendered remedy less and if petitioner is unhappy with the statement issued by respondent no.3, petitioner can withdraw the declaration and pursue the appeal which is pending before the CESTAT. Mr. Jetly submitted that the petition has to be dismissed. 12. Having considered the scheme and rules framed under the scheme, one thing is very clear that it is the intention of Union of India also to put an end to a litigation where the declarant wants to put an end to. Any person can be a declarant except those excluded under Section 125 of the Finance Act. In our view, having considered the various provisions of the scheme alongwith circulars issued by respondent no.2, one thing that is certain is any amount paid either in cash or by virtue of input credit should be reduced at the time of determination of the final amount payable under the scheme. As held by this court in Code Engineers Pvt Ltd. (Supra) the crucial word is "verify" used in Section 126(1) of the Finance Act and Sub Rule (1) of Rule 6 of the Rules. Verify would mean to confirm or establish the truth or truthfulness of statement made in the declaration. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of sub-section (1) of section 126 and sub-rule (1) of rule 6 makes it clear that declaration made by a declarant shall be verified by the designated committee. Such verification shall be based on particulars furnished by the declarant as well as the records available with the department which would include show cause-cum-demand notice or order-in-original, as the case may be. 36. The crucial word appearing in sub-section (1) of section 126 which finds its resonance in sub-rule (1) of rule 6 is 'verify'. What is the meaning of or connotation of the word "verify"? As per Concise Oxford English Dictionary, Indian Edition, "verify" means to make sure or demonstrate that something is true, accurate or justified; swear to or support a statement by affidavit. Black's Law Dictionary, Eighth Edition, has defined the word "verify" to mean- 1. to prove to be true; to confirm or establish the truth or truthfulness of; to authenticate. 2. To confirm or substantiate by oath or affidavit; to swear to the truth of. 37. It is a settled principle of interpretation that words and expressions used in a legislation must take their colour from the context in which they appear. For ascertaining ..... X X X X Extracts X X X X X X X X Extracts X X X X
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