The Himachal Pradesh Government has rolled out Phase-II of the Sadhbhawana Legacy Cases Resolution Scheme, 2025, offering taxpayers a one-time opportunity to resolve pending tax disputes. The scheme, which will remain open from 1st September to 30th November 2025, covers cases under Value Added Tax (VAT), Central Sales Tax (CST), Entry Tax, Entertainment Tax, and Luxury Tax. The primary aim is to reduce long-standing litigation and improve revenue realization for the State.
In a key expansion, Phase-II also includes pending cases related to petroleum products up to the financial year 2020–21. This addition ensures that both subsumed and non-subsumed enactments post-GST implementation are addressed, thereby streamlining pending issues under older tax regimes. The Excise and Taxation Department has urged all eligible defaulters to take advantage of this opportunity for an amicable and final settlement.
A Government Spokesperson informed that nearly 30,000 legacy tax cases are currently pending across the State. The government anticipates a revenue realization of approximately ₹10 crore from this phase of the scheme. Officials expect the initiative to significantly ease the burden on the legal system while enhancing the State’s financial position.
The spokesperson also highlighted the success of previous legacy resolution schemes. Under various schemes launched between 2020 and 2025, the State has already resolved over 49,160 cases, collecting ₹467.71 crore in revenue. This includes:
-
14,814 cases settled in 2020, with ₹393.21 crore realized,
-
20,642 cases in 2021 with ₹19.16 crore,
-
12,813 cases in the initial phase of 2025 with ₹40.31 crore, and
-
898 cases under an additional phase, with ₹15.03 crore collected.
The government remains optimistic that Phase-II will encourage greater taxpayer compliance and further promote a culture of voluntary dispute resolution. The scheme is especially beneficial for businesses and individuals seeking to close legacy cases without prolonged legal proceedings. Taxpayers are encouraged to apply before the 30th November 2025 deadline to avail benefits under this limited-period initiative.
Nurturing Creativity – Keekli Charitable Trust, Shimla
