UNIQUE ENTERPRISES v. UNION OF INDIA (SECRETARY MINISTRY OF FINANCE DEPT.) AND ANR
Categorization under SVLDRS Scheme: Pending Re-quantification Places Case Under "Litigation" Category, Entitling to 70% Relief under Finance Act, 2019.
Court: Bombay High Court
Citation: 2025:BHC-OS:23040-DB
Decision Date: 02-12-2025
List of Laws
Article 226 of the Constitution of India; The Finance Act, 2019; Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019; Central Excise Rules, 1944
Case Brief
- Facts: M/s. Unique Enterprises received a show cause notice in 1993 demanding Central Excise duty. The matter went to the Tribunal, which remanded it for re-quantification in 2010. The Petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, claiming relief under the "litigation" category. The Designated Committee categorized the case under "arrears" and issued Form SVLDRS-3 demanding Rs. 12,93,408. The petitioner contended that a pre-deposit of Rs. 10,00,000 was already made and adjusted.
- Procedural Posture: The Petitioner filed a writ petition under Article 226 of the Constitution of India in the Bombay High Court, challenging the categorization of their case under the "arrears" category and the issuance of Form SVLDRS-3.
- Issue: Did the High Court err in determining whether the petitioner's case falls under the "litigation" category or the "arrears" category under Section 124 of the Finance Act, 2019, for the purposes of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and whether the pre-deposit made by the petitioner should be considered?
- Holding: The High Court held that the Petitioner's case falls under the "litigation" category under Section 124(1)(a) of the Finance Act, 2019, and is entitled to relief to the extent of 70% of the tax dues/duty demand. The Court quashed Form SVLDRS-3 and directed the Respondent to determine the correct amount considering the declaration filed under the Litigation category.
- Reasoning: The Court reasoned that since the matter was remanded by the Tribunal for re-quantification of duty, the issue of quantification remained pending as of June 30, 2019. Therefore, the case falls under the "litigation" category as per Section 124(1)(a) of the Finance Act. The Court also noted that the Respondents had themselves adjusted the pre-deposit of Rs. 10 lakhs in Form SVLDRS-2, and there was no corroborative evidence to doubt the payment. The Court relied on previous decisions, including UCN Cable Network (P) Ltd. Vs. Designated Committee under Sabka Vishwas Legacy Disputes Resolution Scheme, 2019, Nagpur and Morde Foods Pvt. Ltd. Vs. Union of India, to support its finding that a case under litigation is one where the amount of duty has not been confirmed and has not attained finality. The court stated, "Section 124 (1) (c) cannot be made applicable to such pending demand that is not crystalized pursuant to its adjudication".