Summary: The Bombay High Court ruled in favor of M/s. Unique Enterprises, canceling a tax demand of Rs. 12,93,408 under the Sabka Vishwas Scheme. The court found the demand to be wrongly categorized, allowing Unique Enterprises to claim a 70% reduction.
Unique Enterprises, led by Shri Fardoon Minoo Irani, found itself in a legal battle with the Union of India and the Designated Committee under the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019. The issue was over a tax demand originally set at Rs. 39,53,517.
The trouble started with a notice on January 6, 1993, demanding excise duty and penalties. By December 19, 1997, an order confirmed these demands, including large penalties.
Unique Enterprises challenged the order, leading to a Tribunal decision on July 29, 1998, which required a pre-payment of Rs. 10,00,000. The Tribunal later sent the case back for recalculating on December 30, 2010, dropping a portion of the demand.
The Bombay High Court canceled the Tribunal's decision on March 13, 2012, sending the case back for a new look. Eventually, the demand was dropped by the Tribunal on September 5, 2014.
On December 11, 2019, Unique Enterprises filed a declaration under the Litigation category of the Sabka Vishwas Scheme, seeking relief on the remaining duty amount.
Judge Advait M. Sethna and Judge M.S. Sonak ruled that the demand should be under the Litigation category, not Arrears. This allowed Unique Enterprises to claim a 70% reduction on the tax dues.
"The proceedings would fall in the Litigation category when the amount of tax/duty has not been confirmed and has not reached a final decision."
The court canceled the Form SVLDRS-3 issued on March 12, 2020, and directed a re-evaluation under the correct category. This decision was made on December 2, 2025.
This judgment highlights the importance of correct categorization under tax schemes. It also shows the legal system's role in ensuring fair treatment for businesses.
