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5. The Parliament, in the meantime, vide Chapter V of the Finance Act, 2019 dated 1st August, 2019, incorporated therein provisions of SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019 (in short Scheme), which was notified vide Notification dated 21st August, 2019 with effect from 1st September, 2019. Pursuant to the Notification of the said Scheme, petitioner applied in terms of Section 124(1)(a)(ii) (Litigation Category) on the ground that as on 30 th June, 2019, show cause notice issued against the petitioner was pending adjudication. Declaration was filed by petitioner in statutory Form SVLDRS-1 in category-Litigation on 31.10.2019. However, petitioner was issued show cause notice in Form SVLDRS-2 by the Designated Committee under the Scheme, wherein petitioner was, in substance, directed to show cause as to why its declaration be not treated under category 'Arrears' and, accordingly, relief be not extended to the petitioner in terms of Section 124(1) (c) as opposed to the claim of relief of the petitioner u/s 124(1) (a) of the Scheme. Petitioner submitted its reply in Form SVLDRS-2A and contended that its declaration should be treated under 'Litigation Category' on the ground that as on 30th June, 2019, show cause notice of the petitioner was pending adjudication and, thus, petitioner is entitled for the relief to the extent of 50% of the tax due. However, the Designated Committee treated the declaration of the petitioner in category 'Arrears' and held that petitioner is eligible for tax relief only to the extent of 40% of the tax dues. The said decision of the Designated Committee was communicated to the petitioner in Form SVLDRS-3. Although Designated Committee accepted the declaration of the petitioner in category 'Arrears', but while extending the benefit of tax relief to the petitioner, the Designated Committee first adjusted/reduced the amount of pre-deposit/deposit of Rs. 2,45,24,953/- from the amount of 'tax due' of Rs. 4,69,12,227/- and thereafter extended the benefit of tax relief of 40% on the reduced amount to the petitioner and demanded an amount of Rs. 1,34,32,364.40/- from the petitioner as being the amount payable under the Scheme. The determination made by the Designated Committee can be summarized as under:-

8. Petitioner, under the Scheme, filed its declaration in the category - 'Litigation' in Form SVLDRS-1 and petitioner was also issued show cause notice in Form SVLDRS-2A directing the petitioner to show cause as to why its declaration be not treated in the category 'Arrears' instead of category-'Litigation'. In substance, petitioner was also directed to show cause as to why tax relief of 40% of the 'tax due' under category 'Arrears' be not extended to it instead of tax relief of 50% in category 'Litigation'. Petitioner objected to the said action of the Designated Committee and contended that it was entitled to the benefit of tax relief to the extent of 50% under category 'Litigation' and not a tax relief of 40% against category 'Arrears'. However, the Designated Committee, vide order dated 24.02.2020, determined tax relief to the petitioner under category 'Arrears' and only 40% of the 'tax dues' as against tax relief of 50% under category 'Litigation' was extended. However, in Form SVLRDS-3, although tax relief of 40% only was extended under category 'Arrears', but in the Form, category in which relief was extended to the petitioner was reflected as 'Litigation'.

80,64,412.20/- as against the demanded amount of Rs. 1,05,59,869.80/-, and, taking exceptions to the above, petitioner has filed the present writ application.

12. Mr. Sumeet Gadodia, leaned counsel for the petitioner while advancing arguments in both the writ petitions, has referred to the provisions of the Scheme, more particularly Section 121(c), 121(e), 123 and 124 thereof. It has been submitted that petitioners' declarations have been admittedly accepted under the Scheme by the Designated Committee and even SVLDRS-3 has been issued to petitioners under category 'Arrears', but, at the time of computation of the tax relief under the Scheme, the Designated Committee, while placing reliance upon Circular dated 25.09.2019, has altered the definition of 'tax dues' as defined under Section 123 of the Scheme and has first reduced the amount paid by petitioners as pre-deposit/deposit and, thereafter, computed the balance outstanding dues and extended the benefit of tax relief to petitioners under 'Arrears' category, which is contrary to the very purpose and intent of the Scheme.

29. We, accordingly, hold and declare that action of Designated Committee by first deducting the amount of deposit made by petitioners during enquiry, investigation or audit and, thereafter, extending relief to the petitioners by computing the amount of tax due on the outstanding amount, is not as per the mandate of the Scheme. Further, clause 2 (iv) of Circular No.1072/05/2019/CX dated 25.09.2019, to the extent it provides that tax relief is to be granted on the outstanding duty amount, as against the amount of duty recoverable, has an effect of altering the effect of the Scheme itself and cannot be given effect to. We, accordingly, direct the Designated Committee to re-compute the amount payable by petitioners under the scheme in view of the observations made hereinabove, and, to issue revised SVLDRS-3 Form to the petitioners within a period of four weeks from the date of this order. Further, petitioners are directed to deposit the amount payable as determined by Designated Committee within a further period of two weeks from the date of receipt of SVLDRS-