Article explains Applicability of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, Eligibility for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, Relief under the Scheme, Procedure to file forms under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and Status of cases/ appeal pending before the authorities.

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS 2019)

Keeping in view of ease of doing business and moving on with the GST regime, our Hon’ble Finance Minister came up with the Sabka Vishwas-(Legacy Dispute Resolution) Scheme, 2019 (hereinafter to be referred as the “Scheme” while presenting the Union Budget on 5th July 2019. Under this scheme, the eligible person can avail the benefit upto 70% of total tax payable in respect of Excise duty, service tax etc. The window under the Scheme is open from 1st September 2019 to 31st December 2019.

To make it understand, the said scheme is broadly divided into following categories:

1. Applicability of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The Scheme shall be applicable on tax/cess/duty in respect of:

  • The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made thereunder;
  • The Coffee Act, 1942;
  • The Mica Mines Labour Welfare Fund Act, 1946;
  • The Rubber Act, 1947;
  • The Salt Cess Act, 1953;
  • The Medicinal and Toilet Preparations (Excise Duties) Act, 1955;
  • The Additional Duties of Excise (Goods of Special Importance) Act, 1957;
  • The Mineral Products (Additional Duties of Excise and Customs) Act, 1958;
  • The Sugar (Special Excise Duty) Act, 1959;
  • The Textiles Committee Act, 1963;
  • The Produce Cess Act, 1966;
  • The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;
  • The Coal Mines (Conservation and Development) Act, 1974;
  • The Oil Industry (Development) Act, 1974;
  • The Tobacco Cess Act, 1975;
  • The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;
  • The Bidi Workers Welfare Cess Act, 1976;
  • The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;
  • The Sugar Cess Act, 1982;
  • The Jute Manufacturers Cess Act, 1983;
  • The Agricultural and Processed Food Products Export Cess A]\
  • ct, 1985;
  • The Spices Cess Act, 1986;
  • The Finance Act, 2004;
  • The Finance Act, 2007;
  • The Finance Act, 2015;
  • The Finance Act, 2016;

2. Eligibility for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

Under this Scheme, there are five conditions, by following of which a person may avail the benefits:

  • When a person has been subjected to enquiry/investigation or audit and the amount of tax/duty has been quantified and communicated to him or admitted by him in a statement on or before 30th June 2019;
  • When a person has been issued a show cause notice for demand of tax/duty or an appeal arising out of such notice is pending where the final hearing has not been taken place on or before 30th June 2019;
  • When a person has been issued a show cause notice for penalty and late fees which is pending and where the final hearing has not been taken place on or before 30th June 2019;
  • When a person has a recoverable arrears;
  • When a person would like to voluntary disclose an amount of tax/duty etc.

3. Relief under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The following relief has been given under the Scheme: 

Cases pending as per above Point No. 1 to 3 If amount involved in the case is less than Rs. 50 lakhs then 30% of tax dues shall be paid;

If amount involved in the case is more than Rs. 50 lakhs then 50% of tax dues shall be paid;

In respect of above Point No. 4 If amount involved in the case is less than Rs. 50 lakhs then 40% of tax dues shall be paid;

If amount involved in the case is more than Rs. 50 lakhs then 60% of tax dues shall be paid;

In respect of above Point No. 5 100% of tax dues shall be paid

4. Procedure to file forms under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

  • Log on to cbic-gst.gov.in, click on SVLDRS tab and login with your credentials;
  • Click on Menu and under the tab ‘Amnesty Scheme’ click on “SVLDRS-1”;
  • Fill the “SVLDRS-1” and an acknowledgement bearing an unique reference number shall be generated;
  • The constituted designated committee will verify the application and if they find the application and amount of tax/duty correct then a statement in “SVLDRS-3”will be issued within 60 days of the application;

or

The constituted designated committee will verify the application and if they find the application and amount of tax/duty incorrect then a notice in “SVLDRS-2”will be issued within 30 days of the application and asked the taxpayer to present before the committee, after giving an opportunity and being satisfied, they will issue the statement in “SVLDRS-3”;

  • After obtaining “SVLDRS-3”, the taxpayer shall have to make payment within 30 days from the date of issuance of “SVLDRS-3”;
  • After making payment a discharge certificate in SVLDRS-4 shall be issued.

5. Status of cases/ appeal pending before the authorities under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

All the cases/ appeal pending before the authorities (other than High Court/Supreme Court) shall be deemed as withdrawn.

In case of appeal or writ pending before High Court/Supreme Court, an application for withdrawal of the said appeal/writ shall be made and the proof of the withdrawal shall be annexed with the Form SVLDRS-3.

At the end, it is opined that the Scheme can be fruitful in de-clogging the pending cases before the authorities and helpful in reducing the burden of payment of tax, penalties and prosecutions on the taxpayer. After making declaration and payment under said Scheme within stipulated time period, the taxpayer will be free from any prosecution and penalties. 

(Author can be reached at varsha.aggarwal0@gmail.com or at Ph: 011-42178464)

Disclaimer: The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. It doesn’t constitute professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

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