Opal Energy Solution Pvt. Ltd. Vs Designated Committee under the Sabka Vishwas (Madras High Court)
The case concerns a writ petition challenging the computation of tax dues under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner sought to quash the statement issued in Form SVLDRS-3 dated 27.12.2019 and requested that payments made between March and July 2008 be considered while determining the payable amount under the scheme.
The dispute originated from a show cause notice dated 21.05.2007 raising a duty demand of ₹2,22,93,244. The petitioner approached the Settlement Commission, which, by order dated 08.02.2008, recorded payment of ₹1,83,91,666 and determined the balance payable at ₹39,01,578. The petitioner claimed to have subsequently paid ₹38,84,280, leaving only ₹17,298 outstanding. A writ petition challenging the Settlement Commission’s order was dismissed on 20.07.2018, confirming the duty liability.
After the introduction of the Sabka Vishwas Scheme, the petitioner filed a declaration on 28.10.2019. Under the scheme, payment of 60% of tax dues would result in waiver of the remaining amount along with interest and penalty. However, the authorities issued an estimate in Form SVLDRS-2 computing the payable amount at ₹15,60,631 after granting relief, treating ₹39,01,578 as the outstanding duty.
The petitioner contended that the authorities failed to account for payments amounting to ₹38,84,280 made after the Settlement Commission’s order. According to the petitioner, if these payments were considered, no amount would remain payable under the scheme.
