PIL in HC against Sabka Vishwas scheme benefits extended to tax disputes where final hearing is over

A PIL has been filed in the Delhi High Court opposing the government's decision to provide the benefits of the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 to tax disputes where the final hearing has taken place on or before June 30.

The scheme, enacted for settlement of disputes pertaining to levies subsumed in the Goods and Service Tax (GST), provides substantial relief to taxpayers in the form of full waivers of interest, penalties and fines as well as complete amnesty from prosecution proceedings.

The petition has contended that making the scheme applicable to disputes, where the final hearing has taken place on or before June 30 or where the tax amount has not been quantified or communicated before that date, will cause a substantial loss to the exchequer.

The PIL is likely to be listed for hearing before a bench of Chief Justice D N Patel and Justice C Hari Shankar on Friday.

It has sought directions to the government not to cover pending cases in the "arrears" category under the scheme, saying that doing so goes against the provisions of the parent statute -- The Finance Act.

The plea has contended that providing relief in disputes, where the final hearing was over on or before June 30 or where demand was not quantified or communicated prior to that date, will lead to the government losing 50-60 per cent of tax revenues as well as the entire amount of penalty and interest.

It will also lose the entire amount of penalty imposed on co-noticees, the petition has contended.