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TMI Blog2025 (2) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is not admitted, and, for such demand, a litigation has been filed by an assessee - Thus, under the Scheme, amount of 'admitted tax' clearly represents an amount which is admitted by assessee, whereas 'disputed amount' means amount of tax, interest or penalty which is in dispute pursuant to a litigation filed by an assessee. The difference between disputed tax and admitted tax was the amount in dispute and under the scheme, petitioner was entitled for waiver of 60% and 50% respectively, but while computing the tax liability, Settlement Officer first deducted the amount of pre- deposit from the amount in dispute and, thereafter, extended the benefit of waiver under the scheme which is clearly travelling beyond the contours of the scheme itself. The petitioner is right in contending that due to incorrect application of Settlement Scheme, petitioner is denied its actual benefit which resulted into a loss of Rs. 1,32,03,446/- (Rs. 1,33,42,802-1,39,356). However, before the appellate authority, petitioner filed its revised computation taking into consideration the component of declaration form and claimed as per revised computation an amount of Rs. 1,18,02,056/- as refund. Hence, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod 2001-02 to the extent the amount of pre-deposit of Rs. 2.20 crores, being the amount of disputed tax paid by Petitioner has not been allowed to be adjusted against the final settlement amount while issuing settlement order, due to which, Petitioner was compelled to deposit excess payment of Rs. 1,32,03,446/- or alternatively Rs. 1,18,02,056/- as per revised computation filed before the Appellate Authority (Annexure-15). (iii) For issuance of further appropriate writ/order/ direction, including Writ of Mandamus, directing the Respondents to refund an amount of Rs. 1,32,03,446/- or alternatively, to refund an amount of Rs. 1,18,02,056/- as per revised computation filed before the Appellate Authority (Annexure- 15) being the excess amount realized by them in terms of Settlement Scheme of 2022 by adopting the mechanism of deducting the amount of pre-deposit made by Petitioner against the disputed tax and, thereafter, conferring the benefit of waiver of tax to the Petitioner in a most illegal and arbitrary manner. (iv) For issuance of further appropriate writ/order/ direction directing the Respondents to make payment of interest @ 18% per annum on the amount of Rs. 1,32,03,446/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to petitioner. The same was illustrated as under:- Amount admitted in Return 8,17,38,401/- Amount of Tax assessed 13,63,45,498/- Balance to be paid 5,46,07,097/- Less amount of pre-deposit 2,20,00,000/- Remaining Balance 3,26,07,097 Waiver granted [60% of 5,18,04,317 after deduction of Rs. 2,20,00,000 & 50% of Rs. 28,02,780 i.e. Rs.1,78,82,590 + 14,01,390] 1,92,83,980/- Amount to be paid 1,33,23,117/- N.B. Amount directed to be paid is for Rs. 1,33,26,563.12 (marginal difference in computation for Rs. 3446/-) + Rs. 16239/- on account of balance amount as admitted tax. 6. It is the case of petitioner that under the Settlement Scheme, 60% waiver of disputed tax under Section 3 was applicable, where disputed tax related to amount other than certificate/declaration forms and in respect of declaration forms/certificates waiver of tax to the extent of 50% was admissible. According to petitioner, waiver pertaining to disputed tax should have been applied first before adjusting pre-deposit/deposit amounts and had the said methodology been adopted by respondents, total settlement amount would have been Rs. 2,21,39,356/-. 7. However, since respondents first ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s condition of stay, etc. 12. It has been submitted that almost identical provisions of Central Amnesty Scheme i.e. Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 came up for interpretation by this Hon'ble Court, wherein exactly similar dispute was adjudicated by this Hon'ble Court and it was held that intent of the Scheme was to give waiver of disputed tax amount and, merely, because some amount towards pre-deposit/deposit is made by an assessee, the same cannot be first deducted from disputed tax amount for determining the measure for extending benefit of waiver. 13. Per contra, Mr. Ashok Yadav counsel for Respondent-State while referring to the paragraphs of the Counter Affidavit submitted that it is an admitted fact that petitioner deposited an amount of Rs. 2.20 crores pursuant to demand notice under protest, but, the moot question for adjudication would be as to whether the amount deposited by petitioner under protest would remain a disputed amount of tax or a tax realized against the demand raised by revised orders passed pursuant to remand order passed by appellate authority. 14. It has been submitted that although amounts were deposited under protest but once re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or interest or penalty which has been determined as being payable by the person pursuant to an order of assessment, reassessment, scrutiny or any other order made or passed under the Relevant Acts and which is not admitted and for such demand a litigation has been filed before any Appellate Authority or Forum but shall not include any demand in pursuant to an order of assessment, reassessment, scrutiny or any other order made or passed under the Relevant Acts where the Government has filed any case against such demand before any Appellate Authority or higher Courts. 17. A perusal of Settlement Scheme would reveal that under Settlement Scheme, term 'admitted tax' is defined to mean an amount of tax admitted as being payable as per return filed by an assessee, and, the term 'disputed amount' means the amount of tax, interest or penalty which is determined as payable by an assessee pursuant to an order of assessment/re-assessment/scrutiny or any other order and which is not admitted, and, for such demand, a litigation has been filed by an assessee. 18. Thus, under the Scheme, amount of 'admitted tax' clearly represents an amount which is admitted by assessee, whereas 'disputed amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder, it shall be considered provided the relevant tax component in the statutory order has been paid; Explanation-II For the purpose of settlement of dispute, each statutory order/Demand Note issued by the department/ authority shall be construed as one dispute and person has to apply separately for settlement for each such dispute.' 20. In the present case, disputed tax of the petitioner also pertained to non-furnishing of declaration forms and, thus, waiver of tax to the extent of 60% and 50% respectively were applicable to petitioner. It is not in dispute that disputed amount was Rs. 5,18,04,317/- and amount of Rs. 2,20,00,000/-was deposited as pre-deposit and/or condition of stay. 21. In our considered opinion, this calculation made by the respondent is erroneous for the following reason:- If an assessee is having a liability of Rs.1 crore and he does not pay any amount, he will get benefit of 60% waiver as per the scheme and he will have to pay Rs. 40 lakhs. But if an assessee who is having a tax liability of Rs. 1 Crore, pays as pre-deposit pending appeal Rs. 30 lakhs, his balance tax liability is Rs. 70 lakhs; benefit which is to accrue to him cannot be computed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f pre-deposit 2,20,00,000/- Remaining Balance 3,26,07,097 Waiver granted [60% of 5,18,04,317 after deduction of Rs. 2,20,00,000 & 50% of Rs. 28,02,780 i.e. Rs.1,78,82,590 + 14,01,390] 1,92,83,980/- Amount to be paid 1,33,23,117/- N.B. Amount directed to be paid is for Rs. 1,33,26,563.12 (marginal difference in computation for Rs. 3446/-) + Rs. 16239/- on account of balance amount as admitted tax. 24. So, in our opinion, determination of tax liability under the Scheme was to be undertaken in the following manner and not as done by the assessing officer :- Part-1 Admitted amount as per return of the Petitioner. Rs. 8,17,38,401/- Amount paid as admitted tax Rs. 8,17,22,162/- Balance to be paid as admitted tax Rs. 16,239/- Tax assessed by the Assessing Officer (other than rejection of claim arising out of non- submission of declaration Forms) Rs. 13,35,26,479/- Amount paid in respect of assessed tax Rs. 0 Remaining Balance to be paid Rs. 5,18,04,317/- Settlement amount to be paid (40% of Remaining Balance) Rs. 2,07,21,726.80 Part-2 Arrear amount arising out of the non- submission of the declaration Forms. Rs. 28,02,780/- Tax amount arisin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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