Dispute Resolution scheme came by Finance (No. 2) Act ‘2019 to give major relief to the taxpayers having unpaid outstanding liability as on 30-06-2019 with regards to Service Tax , Excise and under 26 other Indirect Tax enactments and Scheme is named as ‘Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019′. Let summarize the important aspects of the scheme
- This Scheme shall be called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
- It shall be effective from 01.09.2019 to 31.12.2019
- Declaration related to excisable goods set forth in the Fourth Schedule (Chapter 24 and 27) i.e. Tobacco & Oil & Petrolium products to the Central Excise Act, 1944 are not included under the Scheme.
- The Scheme is applicable to the Central Excise Act, 1944, Service Tax and 26 other Acts.
Objectives of Scheme
- The Scheme is a onetime measure for liquidation of past disputes of Central Excise, Service Tax and 26 other indirect tax enactments.
- Eligible persons shall declare the unpaid tax/duty dues and pay the same.
- Give relief on payment of Tax/Duty.
- provides for certain immunities including penalty, interest or any other proceedings including prosecution and give relief on tax/duty liability.
Types of Disputes Covered
- No appeal is filed before expiry of time period.
- any type of dispute pending in appeal (Dispute pending before settlement commission not covered in this scheme)
- admitted liability in return
Relief available under the Scheme
||SCN or Appeals (pending as on 30-06-2019)
||Enquiry/ Investigation /Audit (quantified on or before 30-06-2019)
||Amount Payable as per Return
||SCN for late fee /Penalty
|50 Lakhs or Lesser
||Relief only for Interest & Penalty. No tax relief.
|More than 50 Lakhs
Preconditions and Restrictions of Scheme
- The relief calculated shall be subject to the condition that any amount paid as pre-deposit shall be deducted when issuing the statement indicating the amount payable by the declarant.
- Provided that if the amount of pre-deposit or deposit already paid > the amount payable the declarant shall not be entitled to any refund.
- Shall not be paid through the input tax credit
- Shall not be taken as input tax credit of tax/duty paid under the scheme;
- Shall not be refundable under any circumstances.
Cases-Scheme Not applicable
- Appeal before appellate forum and heard finally on or before 30th June 2019.
- Convicted for any offence for the matter for which he intends to file a declaration.
- Issued a SCN final hearing has taken place on or before 30th June 2019.
- Issued a SCN for erroneous refund or refund.
- Subjected to enquiry or investigation or audit and duty involved has not been quantified on or before 30th June 2019.
- Voluntary Disclosure after being subjected to any enquiry or investigation or audit & filed a return, indicating duty as payable, but has not paid it.
- Application in the Settlement Commission.
- Excisable goods from Fourth Schedule to the Central Excise Act, 1944.
After Issue of Discharge Certificate
- not be liable to pay Interest/Fee/Penalty.
- not be liable to be prosecuted.
- Case shall not be reopened in any other proceedings under the Indirect Tax enactment.
Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019- FAQs
Thus, Don’t let it be lapsed and take the benefits of scheme before the deadline i.e. 31-12-2019 for any type of assistance, do let me know. I’ll be happy to assist.