QUESTION

 In SVLDRS, in case the appeal involving recovery of inadmissible cen-vat credit of Rs. 40 lacs was pending hearing as on 30.6.2019, but the same has been adjudicated and confirmed post 30.6.2019 (say on 15.10.19), then whether the relief will be 70% as `tax dues` or 60% as `amount in arrears`. We feel that it should be 70% since as on 30.6.2019, the appeal was pending and no hearing took place.

ANSWER

Facts of the case:
Appeal was pending for hearing as on 30-06-2019. It has been adjudicated and confirmed post 30.6.2019 (say on 15.10.19) 

Law Applicable:
Finance Act 2019
(c) 'amount in arrears' means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of'

 (i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or

  (ii) an order in appeal relating to the declarant attaining finality; or

 (iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019,wherein he has admitted a tax liability but not paid it;

 23. For the purposes of the Scheme, 'tax dues' means'

 (a) where'

 (i) a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum, the total amount of duty which is being disputed in the said appeal;

 (ii) more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum, the sum of the amount of duty which is being disputed by the declarant in his appeal and the amount of duty being disputed in the departmental appeal:

Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019.

124. (a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,'

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

Interpretation: Your case does not fall in category of arrears. Also final hearing has not taken place on or before 30-06-2019, therefore you are eligible for relief of 70% in the category of litigation.

Conclusion: You are eligible for relief of 70%