ELIGIBILITY/INELIGIBILITY UNDER SVLDRS, 2019

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 

CATEGORY OF APPLICATION

> Litigation 

i. SCN involving Duty along with Interest/ Late fee/ penalty (if any) – 124(1)(a) 

Case I SCN Received before 30 June 2019; Final Hearing has not taken place as on 30 June 2019

ELIGIBLE.  Relief U/s 124(1)(a)

Tax    –  70%/ 50% of Tax Dues as the case may be;

Interest  –  100% waiver

Penalty  – 100% Waiver

Case II  SCN Received before 30 June 2019; Final Hearing has taken place before 30 June 2019; OIO- Pending/Reserved

INELIGIBLE.   As per Section 125(1)(c)

However such SCN might become eligible later when OIO is passed by the adjudicating authority and time limit for filling appeal has expired before 31 Dec 2019. Such a declaration will be made under Amount in Arrears category. Thus where final hearing has taken place and OIO is issued by the Adjudicating Authority by 30 Oct 2019, assesse will be eligible to file claim for relief under Arrears Category Section 124(1)(c).

There are various cases in which hearing is completed however order is not issued. This is so in spite of specific instruction by CBIC vide Para 14.10 of Master Circular No.- 1053/02/2017-CX Dated 10.03.2017 which reproduced here under:

“14.10 Issue and Communication of Order: In all cases where personal hearing has been concluded, it is necessary to communicate the decision as expeditiously as possible but not later than one month in any case , barring in exceptional circumstances to be recorded in file.” 

Case III SCN Received before 30 June 2019; Final Hearing has taken place as on 30 June 2019; OIO- Passed

INELIGIBLE for Relief under section 124(1)(a) category. However relief can be claimed under Amount in Arrears category ELIGIBLE.  Relief U/s 124(1)(c) as amount in arrears after time limit for filling appeal has expired.

Tax  –   60%/ 40% of Tax Dues as the case may be;

Interest   –    100% waiver

Penalty  –  100% Waiver

Case IV  SCN Received after 30 June 2019

INELIGIBLE.  As per Section 124(1)(a)

Case V  SCN Received before 30 June 2019 for an erroneous refund or refund

INELIGIBLE.  As Per Section 125(1)(d)

ii. SCN involving Late fee/ penalty only – 124(1)(b)

Case I  SCN Received before 30 June 2019; Amount of Duty: NIL; Interest: Nil; Late Fees/ Penalty: Yes

ELIGIBLE.    Relief U/s 124(1)(b)

Tax     – NA

Interest   –   NA

Penalty   –   100% Waiver 

Case II  SCN Received before 30 June 2019; Amount of Duty: Yes but paid; Interest: Nil; Late Fees/ Penalty: Yes

ELIGIBLE.  Relief U/s 124(1)(b)

Tax  –   NA

Interest  –   NA

Penalty   –  100% Waiver 

Case III  SCN Received after 30 June 2019; Amount of Duty: Yes but paid; Interest: Nil; Late Fees/ Penalty: Yes

INELIGIBLE. As per Section 123(b) 

  • If SCN covers multiple issues, a person has to file declaration for entire amount of tax dues as per SCN.
  • Declaration or computation of tax relief for each SCN has to be made separately as each SCN is treated as separate case under the scheme.

iii. Appeal pending as on 30 June 2019 – 124(1)(a)

Case I Appeal Pending as on 30 June 2019; Final Hearing Not Held before 30 June 2019

ELIGIBLE     Relief U/s 124(1)(a)

Tax  –    70%/ 50% of Tax Dues as the case may be;

Interest   –   100% waiver

Penalty   –   100% Waiver

Case II  Appeal Pending as on 30 June 2019; Final Hearing held before 30 June 2019; OIA Not Passed

INELIGIBLE   As Per Section 125(1)(a)

However such cases will be eligible later under ‘Amount in Arrears’ category if OIA is passed before 31 Dec 2019. It is pertinent to note that for the purpose of Section 121(c)(ii) no cut off date is specified. However assesse has to declare to Assessing authority, to treat the OIA as final and he would not dispute the same, to fall under section 121(c)(ii).

Case III   Appeal Pending as on 30 June 2019; Final Hearing held before 30 June 2019; OIA Passed; Again Appeal filed

ELIGIBLE  Relief U/s 124(1)(a)

Eligible, if appeal before next appellate authority is pending on or before 30 June 2019. However if appeal has been filled on or after 1 July 2019 then, in order to opt the scheme the assesse has to withdraw the appeal so that the impugned OIA attains finality. In such scenario this case would fall in amount in arrears category [Sec 124(1)(c)].

> Amount in Arrears

iv. Appeal Not Filed or having filled attained finality- 124(1)(c)

Case I SCN Received before 30 June 2019; OIO- Passed; Time Limit of Filling Appeal Expired before 30 June 2019

ELIGIBLE.  Relief U/s 124(1)(c)

Tax    –   60%/ 40% of Tax Dues as the case may be;

Interest   –   100% waiver

Penalty  – 100% Waiver

Case II  SCN Received before 30 June 2019; OIO- Passed; Time Limit of Filling Appeal Expired after 30 June 2019

ELIGIBLE.  Relief U/s 124(1)(c) as amount in arrears after time limit for filling appeal has expired.

Tax  –  60%/ 40% of Tax Dues as the case may be;

Interest   – 100% waiver

Penalty   –  100% Waiver

Case III  Appeal filled before 30 June 2019; OIA Passed; Time Limit of Filling Appeal Not Expired

ELIGIBLE  Relief U/s 124(1)(c)

Eligible, if the impugned OIA attains finality [Sec 121(c)(ii)]. In order to opt the scheme the assesse has to declare to Assessing authority, to treat the OIA as final and he would not dispute the same.

Tax  –   60%/ 40% of Tax Dues as the case may be;

Interest  –   100% waiver

Penalty  –  100% Waiver 

v. Tax Dues declared in Return- 124(1)(c)

Case I  Return Filled before 30 June 2019; Tax declared in return as payable but not paid

ELIGIBLE.  Relief U/s 124(1)(c)

Tax  –   60%/ 40% of Tax Dues as the case may be;

Interest   –  100% waiver

Penalty  – 100% Waiver

Case II  Return Filled after 30 June 2019; Tax declared in return as payable but not paid

INELIGIBLE.  As per Section 125(1)(f)(ii)

> Investigation, audit or Enquiry

Case I   Investigation, audit or Inquiry initiated pending; Amount of Duty quantified before 30 June 2019

ELIGIBLE.    Relief U/s 124(1)(d)

Tax   –      70%/ 50% of Tax Dues as the case may be;

Interest  –  100% waiver

Penalty   –   100% Waiver 

Case II  Investigation, audit or Inquiry initiated pending; Amount of Duty quantified after 30 June 2019

INELIGIBLE. As per Section 125(1)(e)

However such cases might become eligible later when OIO is passed by the adjudicating authority and time limit for filling appeal has expires before 31 Dec 2019. Such a declaration will be made under Amount in Arrears category. Thus where OIO is issued by the Adjudicating Authority by 30 Oct 2019, assesse will be eligible to file claim for relief under Arrears Category Section 124(1)(c).

  • Dispute Resolution and amnesty are two components of this scheme.
  • In case of voluntary disclosure of duty not paid, the full amount of disclosed duty would have to be paid.
  • There will be full waiver of interest and penalty under all the eligible categories of the scheme.
  • A declaration under this scheme will not be a basis for assuming that the declarant has admitted the position and no fresh SCN will be issued merely on that basis.
  • If the declarant does not pay the amount within the stipulated time, the declaration will be treated as lapsed.

SCN- Show Cause Notice

OIO- Order in Original

OIA- Order in Appeal- an order passed by an appellate forum with respect to an appeal filed before it.

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