Himachal Pradesh Unveils Sadhbhawana Scheme to Tackle Legacy Tax Cases

The Himachal Pradesh government introduces the 2025 Sadhbhawana Legacy Cases Resolution Scheme, targeting non-subsumed enactments and addressing petroleum-related cases until 2017-18. Anticipating 3,500 case resolutions and Rs 10 crore revenue, the scheme follows previous successful initiatives in reducing tax-related litigation post-GST implementation.

The Himachal Pradesh government has taken a significant step towards resolving long-standing tax disputes with the launch of the Himachal Pradesh Sadhbhawana Legacy Cases Resolution Scheme, 2025. The initiative extends its remit to include cases under non-subsumed enactments, notably excluding those governed by the State Value Added Tax Act for petroleum products such as diesel and petrol. Cases related to petroleum products up to the financial year 2017-18 are set to be resolved under the new scheme, as stated in an official release.

According to Chief Minister Sukhvinder Singh Sukhu, the initiative aims to resolve approximately 3,500 cases and is expected to generate a revenue realization of Rs 10 crore. The government has periodically launched Legacy Cases Resolution Schemes to minimize litigation and boost revenue. These schemes have already addressed 48,269 pending cases, amassing a revenue of Rs 452.68 crore.

Following the implementation of the Goods and Services Tax (GST) Act on July 1, 2017, several state taxes were subsumed under GST. To resolve pending cases under these taxes, the state has introduced three Legacy Cases Resolution Schemes thus far. Additionally, the Chief Minister announced plans for infrastructure and tourism development, including upgrading Chadiyar Sub-Tehsil, establishing a new Public Works Department sub-division, and developing tourist spots. Enhancements to sports facilities and educational offerings were also confirmed.

(With inputs from agencies.)