Lokesh Pathak Vs Designated Committee (Delhi High Court)
Delhi High Court held that redemption fine needs to be waived once the tax payer has availed the benefits of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 [SVLDR Scheme] and has paid the amount in terms thereof.
Facts- The present petitions have been filed by the Petitioners seeking directions inter alia to Respondent No.2– Designated Committee, CGST, to issue the discharge certificate in respect of Show Cause Notice dated 28th April, 2005, thereby concluding the proceedings initiated vide the SCN.
These petitions are a part of the batch of petitions wherein the short question that arises for consideration of this Court is whether redemption fine is to be considered as part of duty, penalty or the amount eventually payable and is hence, covered by the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 or not.
Conclusion- This Court is of the opinion that when penalties and interest are being waived under the SVLDR Scheme but the redemption fine is not waived, as is being argued by the Respondents, such an interpretation would go contrary to the fundamental purpose and the raisondetre of the SVLDR Scheme itself. In the opinion of this Court, the purpose of the SVLDR Scheme is to give a finality to a particular dispute and not to keep the aspect relating to redemption fine pending. Seizure cases are also no exception to this.
