Since the company was not asking for the benefits under scheme for tobacco goods, it should be allowed the benefit under the SVLDR Scheme for non-tobacco goods.
Nidhi | Jul 25, 2025 |
Excise: Bombay High Court Allows SVLDR Scheme Benefits for Non‑Tobacco Goods
Godfrey Phillips India Ltd, a manufacturer that is primarily engaged in the tobacco industry, along with several of its employees, filed writ petitions before the Bombay High Court after their applications under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 were rejected by the tax authorities dated December 31, 2019.
The tax authorities rejected the application, saying that the company manufactures cigarettes and is not eligible to claim any benefits under the Scheme as per the provisions of Section 125(1)(h) of the Finance (No. 2) Act, 2019.
On the other hand, the company clarified that it is not claiming benefits under the SVLDR Scheme for the tobacco products and the goods mentioned in the Fourth Schedule of the Central Excise Tariff Act, 1985, as the company has other lines of business too, and tobacco products are one of them. Therefore, without any prohibition or any good reason, the authority rejected the benefits under the Scheme. Additionally, all the applications were rejected without even giving an opportunity to be heard to the petitioner company.
The court observed that Godfrey Phillips was not given a chance for a personal hearing before rejecting the applications. The court held that there is no valid reason on the basis of which the application of the petitioner concerning the goods or input credits for goods and services should not be considered. Also, the company made it clear that it was not asking for the benefits of the scheme for tobacco-related items. Therefore, the company should be allowed the benefit under the SVLDR Scheme for non-tobacco goods.
The High Court of Bombay set aside the order and also gave direction to the tax authority to freshly consider the applications of Godfrey Phillips for the goods and input credits for goods and services other than those which fall under the Fourth Schedule. The court directed the company to appear before the authority, and a final hearing would be conducted or rescheduled.
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