The Delhi High Court addressed a case involving Varner Retail Services South Asia Pvt. Ltd. and the Assistant Commissioner, CGST Delhi South, concerning the applicability of the Sabka Vishwas Scheme, 2019. The petitioner had previously settled a show cause notice (SCN) under the Scheme. However, a subsequent SCN dated December 19, 2019, was issued for later periods, and the petitioner sought to apply the Scheme's benefits to this later notice. This request was rejected, prompting the petitioner to challenge the decision in court.
The central issue was whether a show cause notice issued after the Scheme's cut-off date could be considered a continuation of an earlier SCN. The High Court ruled that eligibility under the Sabka Vishwas Scheme is strictly determined by the statutory cut-off dates set by the legislature. The Court emphasized that the second SCN was an independent proceeding covering a different period and could not be linked to the earlier notice.
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The Court clarified that the scope of beneficial schemes like the Sabka Vishwas Scheme cannot be extended beyond the legislative intent through judicial interpretation. While the Court upheld the rejection of the Scheme benefit for the later SCN, it maintained the petitioner's right to pursue statutory remedies to challenge the adjudication.
Parties: Varner Retail Services South Asia Pvt. Ltd. vs. Assistant Commissioner, CGST Delhi South & Ors.
Date: 16 December 2025
Facts:
- The petitioner settled an earlier SCN under the Sabka Vishwas Scheme, 2019.
- A subsequent SCN dated 19.12.2019 was issued for later periods.
- The petitioner sought Scheme benefit for the later SCN, which was rejected.
- The rejection was challenged before the High Court.
Issue:
- Whether a show cause notice issued after the Scheme cut-off date can be treated as a continuation of an earlier SCN?
Order:
- The High Court held that eligibility under the Sabka Vishwas Scheme is governed strictly by statutory cut-off dates prescribed by the legislature.
- It observed that the second show cause notice was an independent proceeding covering a different period and could not be artificially linked to the earlier notice.
- The Court clarified that beneficial schemes cannot be expanded beyond legislative intent through judicial interpretation.
- While upholding rejection of Scheme benefit, the Court preserved the petitioner’s right to challenge the adjudication through statutory remedies.
