Interest settlement part of indirect tax scheme with some riders: HC

Tax authorities' order not allowing disputes arising out of interest payment for resolution quashed

The Madhya Pradesh High Court has quashed an order by the tax authorities to not allow disputes arising out of interest payment for resolution under a settlement scheme.

The authorities had earlier rejected an application for resolving a dispute arising out of interest payment under the Sabka Vishwas Legacy Dispute Resolution Scheme. The scheme was launched in 2019 to resolve all disputes relating to the erstwhile Service Tax and Central Excise Acts, which are now subsumed under GST, as well as 26 other indirect tax enactments including the Agriculture Produce Cess Act, 1940, the Coffee Act, 1942, specific finance Acts.