SVLDR Scheme Applies to any SCNs for Penalty/Late Fee Regardless of Adjudication or Appeal: Gujarat HC rules in Favour of UltraTech

The Gujarat High Court ruled that the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) applies to any show cause notice (SCN) for penalty or late fee, regardless of whether it is under adjudication or appeal. This decision came in favor of UltraTech Cement, which had a SCN proposing a penalty of over Rs. 20 crore for alleged wrong distribution of ineligible CENVAT credit. The court noted that the scheme’s FAQs clarify eligibility for cases where the final hearing has not occurred by June 30, 2019. The court directed the authorities to issue Form SVLDRS-4 to UltraTech within 12 weeks, emphasizing that the mere mention of a proposed penalty in the SCN does not render the declaration ineligible under the scheme. This ruling reinforces the broad applicability of the SVLDRS to facilitate dispute resolution and reduce litigation.