Court Holds Re-quantification Was Pending on 30 June 2019; Petitioner Entitled to 70% Relief Under SVLDRS Litigation Category, Not 60% Arrears
Meetu Kumari | Dec 8, 2025 |
HC Rules SVLDRS Relief Must Be Granted Under Litigation Category: SVLDRS-3 Demand Set Aside
M/s. Unique Enterprises filed a writ petition challenging the SVLDRS-3 issued by the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, which quantified dues of Rs. 12,93,408 under the “Arrears” category. The petitioner argued that the Department wrongly treated the case as arrears, although the original show cause notice issued in 1993 had been remanded for re-quantification by the Tribunal in 2010, and the issue of duty and penalty remained pending without final adjudication.
Over the years, various appellate orders resulted in partial dropping of duty, but the balance demand was still open for re-determination. In December 2019, the petitioner filed an SVLDRS-1 declaration under the “Litigation” category for Rs. 32,33,520, asserting eligibility for 70% relief. Aggrieved by the SVLDRS-3 computation and categorisation, the petitioner approached the High Court.
Issue Before HC: Whether the petitioner’s case fell under the Litigation category under Section 124(1)(a) of the Finance Act, 2019 or under the Arrears category under Section 124(1)(c), leading to higher payable duty.
HC Decided: The High Court held that the petitioner’s case unmistakably fell under the Litigation category, as the quantification of duty arising from the 1993 show cause notice had not attained finality as on 30 June 2019. The Tribunal’s remand order of 30 December 2010 specifically required re-quantification of duty and penalty by the adjudicating authority, and this exercise was still pending. The Court relied on earlier judgments such as UCN Cable Network and Morde Foods, which held that where adjudication is reopened or remanded, the matter falls under litigation for purposes of SVLDRS.
The Court also accepted that the petitioner’s pre-deposit of Rs. 10,00,000 had been duly considered earlier by the Department itself in SVLDRS-2, and there was no contrary evidence to suggest otherwise. The Court quashed the SVLDRS-3 dated 12 March 2020 and directed the Designated Committee to re-determine the payable amount strictly under the Litigation category within two months.
To Read Full Judgment, Download PDF Given Below
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