Order date – 22 November 2022

Fact –  

• The Petitioner, Mukesh Jain Proprietor of M/S Jainsons, is willing to avail Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, (hereinafter referred to as the ‘Scheme’) enacted as Part V of the Finance (No.2) Act, 2019.
• On 11th December 2009, the officers of Central Excise (‘the Department’) visited the premises of the Petitioner, seized the goods found available at the premises and resumed the records.
• A show cause notice dated 14th March 2011, proposing a demand and recovery of Central Excise Duty from the Petitioner along with the interest. 
• The adjudicating authority confirmed the demand of Central Excise Duty for an amount of Rs. 1,11,35,419/- after correcting the calculation errors.

Issue – 

• Whether the demand of Central Excise Duty from the petitioner for an amount of Rs. 1, 11,35,419/- is in order?

Order – 

• The Court finds merits in the submissions of the learned counsel for the Petitioner that for determining the amount payable by the Petitioner under the Scheme, the amount of tax dues to be taken into consideration would be for Rs. 1,11,35,419/- i.e., the amount confirmed by the original authority in the first round of litigation since the said assessment was accepted by the Department.
• The Tribunal placed reliance on the judgment of this Court in Seventh Plane Networks Private Limited v. Union of India and Others, 2020 SCC OnLine Del 2446 wherein the Court has held that a liberal interpretation has to be given to the scheme as intent is to unload the baggage relating to legacy disputes under the Central Excise and Service Tax and to allow the businesses to make a fresh beginning.
• Thus, in this view of the matter, since the Petitioner herein seeks to avail the benefits of the Scheme and is willing to pay the tax dues determined as per the demand raised in the order-in-original, he cannot be denied the said option and he cannot be put in a worse-off situation for having succeeded in his appeal.
• Hence it was held that disputed tax dues in respect of the Petitioner would be the amount confirmed by the original authority in the first round of litigation of Rs. 1,11,35,419/-. 
• The determination of tax by the Designated Committee in Form No. SVLDRS-3 is set aside. The Respondent is directed to issue a fresh Form No. SVLDRS-3 to the Petitioner and determine the tax dues on the basis of Rs. 1,11,35,419/- under Section 127 of the Act and accompanying Rule.