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Section 124 of Finance Act, 2019 Not Violative of Article 14 Punjab and Haryana HC

Team SoOLEGAL 20 Feb 2023 10:45am

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Section 124 of Finance Act, 2019 Not Violative of Article 14 Punjab and Haryana HC

New Delhi: The Hon’ble Division bench of Justices Tejinder Singh Dhindsa and Pankaj Jain, Punjab and Haryana High Court in a case titled “M/s. Schlumberger Asia Services Limited v. Union of India” upheld the constitutional validity of Sections 124(2) and 130(2) of the Finance Act, 2019, which deal with the ‘Vivadse Vishwas Scheme’ (VSV Scheme).

This Writ was filed to seek directions and order for the respondents to allow adjustment of the amounts already paid by the petitioner while considering their case under 'Vivad se Vishwas Scheme' notified by way of Finance Act, 2019 and to allow refund of excess amounts already paid. The petitioner also prayed to quash the impugned provision of law contained in Section 124(2) and in Section 130(2) of the Act as ultra vires, illegal and unconstitutional.

Giving reference to the relevant provisions of the Finance Act, 2019, the Court observed that the legislature in its own wisdom has repeatedly reiterated that the declarant under the Scheme shall not be entitled for any refund, irrespective of the fact that the amount of pre-deposit and deposit already paid by the by the declarant exceeds the amount payable under the scheme. Hence, the writ petition was rejected.




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