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TMI Blog2022 (10) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty payable by the respondent while ignoring the amount deposited by the respondent under protest. There are merit in the submission of Mr. Priyadarshi Manish that the amount deposited has no specific colour since the amount was deposited under protest and even before the crystallisation of the liability of the respondent-assessee as Central Excise Duty or as interest. Pertinently, the show cause notice was issued some time after the petitioner had already deposited the amounts aforesaid under protest. The issues with regard to the liability of the respondent towards duty and interest were at large and the amounts were already deposited when the scheme came into force. The circular issued by the Central Board of Indirect Taxes and Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 which is contained in Chapter-V of the said Finance Act. The relevant scheme is discernible, in so for as it is relevant for our purpose from Sections 120 and 124. For the sake of convenience, we reproduce the aforesaid provisions of the Finance Act, 2019:- 120. (1) This Scheme shall be called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereafter in this Chapter referred to as the Scheme ). (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 124. (1) Subject to the conditions specified in sub-section (2), the relief available to a declarant under this Scheme shall be calculated as follows:- (a) where the tax dues are relatable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues. (2) The relief calculated under sub-section (1) shall be subject to the condition that any amount paid as predeposit at any stage of appellate 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: Provided that if the amount of predeposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in the statement issued by the designated committee, the declarant shall not be entitled to any refund. 4. It appears that the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondent-assessee under the head of interest was not liable to be adjusted and only the amount deposited under the head of Central Excise Duty was liable to be adjusted. 7. The learned Single Judge has allowed the writ petition by placing reliance on the judgment of the Division Bench of the Punjab and Haryana High Court in Schlumberger Solutions Pvt. Ltd. Vs. Commissioner Central GST and Others, CWP-6845-2020 dated 30.11.2021, reported as 2021-TIOL-2238-HC-P H-ST, wherein an identical issue was considered by the Division Bench and the Division Bench held that whatever amounts are deposited by the assessee including towards interest or penalty are liable to be adjusted against the Central Excise dues payable by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the second category. The provision only talks of amount irrespective of whether it has been paid as tax or interest or penalty. Thus, the view taken by the Designated Committee cannot be sustained. There is another side to the story. Had the petitioner remitted the entire amount paid by him towards tax, the respondents would have given credit of entire amount and his interest liability would have been waived off as well. The petitioner cannot be punished for depositing the amount under different heads once the provision mandates to discount the amount paid during the investigation dehors the head it has been deposited under. The present petition is allowed. Resultantly: (i) the comments of Designated Committee informs SVLDRS-2 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted at the time of adjudication. There may be situations where such deposits may have been made but could not be appropriated due to pendency of adjudication proceedings. With a view to facilitate the taxpayer, as well as to recognise and appropriate these deposits as revenue, it is clarified that such deposits can be deducted/adjusted when issuing the statement indicating the amount payable by the declarant. (iii) Many a times, the deposits during enquiry, investigation or audit etc are made under protest . Such deposits need to be adjusted by the designated committee in order to determine the final amount payable by the declarant, once a declaration has been filed by the taxpayer. Section 130(2) provides that in case any pre-deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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