Goods and Service Tax (GST)– Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
Welcome to A One Stop Solution for Liquidation of Past Dispute Resolutions and Tax Dues Amnesty for Assessees having Central Excise & Service Tax Legacy Disputes from further proceedings and legal prosecutions providing Benefits under the Scheme with total waiver of Penalty, Late Fees and Tax Reliefs for Cases in Past Litigations, Appeal, SCN’s, Enquiries, Investigations, Audit, Tax Arrears and Tax Payable in past Returns not Paid with Tax Dues Quantified.
Scheme Validity from 1st September 2019 to 31st December 2019
Benefits under the Scheme
1. Cases Pending in Litigation, Appeal, SCN’s, Enquiries, Investigations and Audit with Tax Dues Quantified.
| Tax Payable | |
| a. Duty Less than INR 50.0 Lakhs
|
30% |
| b. Duty Greater than INR 50.0 Lakhs
|
50% |
2. Cases Pending in Tax Arrears and Tax Payable in Returns but not Paid
| Tax Payable | |
| a. Duty Less than INR 50.0 Lakhs | 40% |
| b. Duty Greater than INR 50.0 Lakhs | 60% |
3. Cases with Show Cause Notices for Penalty and Late Fees Only
Tax Relief under the Scheme – 100%
4. Voluntary Disclosures – Tax Payable – 100%
5. Exclusions from the Scheme:-
- Cases in respect of excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (this includes tobacco and specified petroleum products)
- Cases for which the taxpayer has been convicted under the Central Excise Act, 1944 or the Finance Act, 1944
- Cases involving erroneous refunds
- Cases pending before the Settlement Commission.
6. Resolving 1.5 Lakh Assessees Under Litigations involving INR 3.75 Lakh Crores
Authors’ Analysis
“GST Revenue Collection by the Government for the period from 1.4.2019 to 31.08.2019 is estimated at INR 5,14,378 Crores. The GST revenues has been INR 7,40,650 Crores for the period from 1.7.2017 to 31st March 2018 which improved to INR 11,77,369 Crores for the period from 1.4.2018 to 31.03.2019, an increase of INR 4,36,719 Crores by 58.96%.”
Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
“Sabka Viswas (Legacy Dispute Resolution) Scheme 2019 has been introduced vide Financial Bill No. 2 Bill 2019 is a one time measure for liquidation of past disputes of Central Excise, Service Tax and 29 other indirect tax enactments. Our Finance Minister Smt. Nirmala Sitharaman, placed the finance budget on 5th of July 2019, which was the 1st Finance budget of this new Government, introduced a new amnesty scheme in the name of ‘Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019’.
Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
| Sr. No. | Section | Particulars |
| 1 | 120 | Short Title and commencement |
| 2 | 121 | Definitions |
| 3 | 122 | Application of scheme to indirect tax enactments |
| 4 | 123 | Tax Dues |
| 5 | 124 | Relief available under scheme |
| 6 | 125 | Declaration under scheme (Form SVLDRS-1) [Rule 3(1)] |
| 7 | 126 | Verification of declaration by designated committee |
| 8 | 127 | Issue of statement by designated committee
– Form SVLDRS-2 [Rule 6(3)], Form SVLDRS-2A [Rule 6(4)], Form SVLDRS-2B [Rule 6(5)], Form SVLDRS-3 [Rule 6(2)] – Discharge Certificate u/s 137(8) Form SVLDRS 4 [Rule 9] |
| 9 | 128 | Rectification of errors |
| 10 | 129 | Issue of discharge certificate to be conclusive of matter and time period |
| 11 | 130 | Restrictions of scheme |
| 12 | 131 | Removal of doubts |
| 13 | 132 | Power to make rules |
| 14 | 133 | Power to issue orders, instructions, etc |
| 15 | 134 | Removal of difficulties |
| 16 | 135 | Protection to officers |
Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 – Salient Features
[Central Board of Indirect Taxes and Customs (CBIC), Notification No. 05/2019 Central Excise-NT, New Delhi, the 21st August, 2019]
In exercise of the powers conferred by section 132(1) & (2) of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government has introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.
Rule 1:- Short Title and Commencement
Rule 2:- Definitions
Rule 2(a):- “Scheme”
Rule 2(b):- “Section”
Rule 2(c):- “Form”
Rule 3:- Form of declaration under section 125 – Form SVLDRS -1
Rule 4:- Auto acknowledgement (ARN)
Rule 5:- Constitution of designated committee
Rule 5(1):-
The designated committee under section 126 shall consist of –
(a) the Principal Commissioner or Commissioner of Central Excise and Service Tax, and the Additional Commissioner or Joint Commissioner of Central Excise and Service Tax, in a case where the tax dues are more than rupees fifty lakh:
There shall be only one such designated committee in a Commissionerate of Central Excise and Service Tax;
(b) the Additional Commissioner or Joint Commissioner of Central Excise and Service Tax, and the Deputy Commissioner or Assistant Commissioner of Central Excise and Service Tax, in a case where the tax dues are rupees fifty lakh or less:
There will only be one such designated committee in a Commissionerate of Central Excise and Service Tax;
(c) the Principal Additional Director General (Adjudication) or Additional Director General (Adjudication), Directorate General of Good and Services Tax Intelligence (DGGI), and Additional Director or Joint Director, Directorate General of Good and Services Tax Intelligence (DGGI), Delhi.
Rule 5(2):-
The members of the designated committee mentioned in Rule 5(1) (a) & (b) shall be nominated by the Principal Chief Commissioner or Chief Commissioner of Central Excise and Service Tax.
Rule 5(3):-
The members of the designated committee mentioned in Rule 5(1) (c) shall be nominated by Principal Director General or Director General, Directorate General of Good and Services Tax Intelligence (DGGI).
Rule 6:- Verification by designated committee and issue of estimate, etc.-
Rule 6(1) – Verification by Designated Committee
Rule 6(2):- Form SVLDRS-3
Rule 6(3):- Form SVLDRS-2
Rule 6(4):- Form SVLDRS-2A
Rule 6(5):- Form SVLDRS-2B
Rule 6(6):- Form SVLDRS-3
Rule 7 Form and manner of making the payment
Rule 8 Proof of withdrawal of appeal from High Court or Supreme Court
Rule 9 Issue of discharge certificate
Forms SVLDRS – 1, 2, 2A, 2B, 3 and 4
As per Notification No. 05/2019 Central Excise-NT, New Delhi, the 21st August, 2019 and as per G.S.R. 588(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 132 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby making the rules and forms annexed to the Rules as defined under Rule 2(c) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules 2019.
The Forms under the Scheme are as follows:
- Form SVLDRS-1
Declaration under section 125 of the Finance Act (No. 2), 2019 read with rule 3 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019
- Form SVLDRS-2
Estimate under section 127 of the Finance (No.2) Act, 2019 read with rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 to be issued by the Designated Committee
- Form SVLDRS-2As
Written submissions, waiver of personal hearing and adjournment under section 127 of the Finance (No.2) Act, 2019 read with rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019
- Form SVLDRS-2B
Intimation of personal hearing after adjournment under section 127 of the Finance (No.2) Act, 2019 read with rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019
- Form SVLDRS-3
Statement under section 127 of the Finance (No.2) Act, 2019 read with rule 6 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 to be issued by the Designated Committee
- Form SVLDRS-4
Discharge Certificate for Full and Final Settlement of Tax Dues under section 127 of the Finance (No. 2) Act, 2019 read with rule 9 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
Features of the Scheme
- Facility for adjustment of any deposits of duty already made
- Settlement dues to be paid in cash electronically only and cannot be availed as input tax credit later
- A full and final closure of the proceedings in question. The only exception is that in case of voluntary disclosure of liability, there is provision to reopen a false declaration within a period of one year
- Proceedings under the Scheme shall not be treated as a precedent for past and future liabilities
- Final decision to be communicated within 60 days of application
- No final decision without an opportunity for personal hearing in case of any disagreement
- Proceedings under the Scheme will be fully automated.
- Where single appeal is pending as on 30.06.2019 – Total amount of duty disputed in appeal;
- Where More than one appeal is pending, arising out of single order(Incl. Dept. Appeal) as on 30.06.2019 – Total amount of duty disputed in both appeal;
- Where any SCN has been received on or before 30.06.2019 – the amount of duty stated to be payable is the said SCN;
- Where an enquiry or investigation or audit is pending against the declarant – the amount of duty payable which has been quantified on or before 30.06.2019;
- Where the amount has been voluntarily disclosed by the declarant – Total amount of duty stated in the declaration;
- Where an amount in arrears relating to the declarant is due, the amount in arrears.
- Scheme shall be applicable to the following enactments, namely:—
-
- The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act (Service Tax), 1994 and the rules made thereunder;
- The Agricultural Produce Cess Act,1940;
- 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 Act, 1985;
- The Spices Cess Act, 1986;
- The Finance Act, 2004, 2007, 2015, 2016;
- Any other Act, as the Central Government may, by notification in the Official Gazette, specify.
—
CA Rakesh Choudhary B.Sc F.C.M.A F.C.A
Practising Chartered Accountant (CA) and Cost & Management Accountant (CMA)
E.Mail: choudhary.rakesh@icai.org
Author Bio
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