Tax demand reduced by ₹23.31 lakhs

Established that after remand, tax dues under SVLDRS cannot exceed the earlier confirmed amount. HC reduced dues from ₹1,34,66,456 to ₹1,11,35,419 — landmark precedent for settlement schemes.

The issue

A show-cause notice dated 14.03.2011 proposed a demand of Central Excise duty of ₹1,34,66,456, of which the Original Authority confirmed ₹1,11,35,419.

The matter was remanded by CESTAT on the assessee’s own appeal. While it was pending re-adjudication the assessee opted for the SVLDR Scheme, and the designated committee issued SVLDRS-3 computing the tax dues at ₹1,34,66,456 — the amount originally proposed, rather than the amount that had been confirmed.

Why it matters

The Delhi High Court accepted the contention that on re-adjudication the demand survives only to the extent it was confirmed in the first round, because it is settled law that a person cannot be put in a worse position in his own appeal.

The Court determined the tax dues at ₹1,11,35,419 — a reduction of ₹23.31 lakhs, and the governing principle wherever a settlement scheme follows a remand.

Related practice area

This matter falls within our central excise & service tax practice.