Hon Finance Minister Smt. Nirmala Sitharaman had announced SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019 for unblocking Rs. 3.85 Lacs Cr in pending litigation relating to Excise & Service Tax etc. at various levels from SCN stage to adjudication pending upto Supreme Court. Date has been notified for start of the scheme and rules are notified vide Notification No. 4 & 5 of Central Excise (NT) dtd. 21.08.2019. The scheme will start from 1st Sept 2019 and end on 31st Dec 2019, during which declaration needs to be filed to claim the benefit under the scheme.
◊ Scheme will be applicable to any pending amount relating to :
a) 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;
b) the following Acts, namely:—
(i) the Agricultural Produce Cess Act,1940;
(ii) the Coffee Act, 1942;
(iii) the Mica Mines Labour Welfare Fund Act, 1946;
(iv) the Rubber Act, 1947;
(v) the Salt Cess Act, 1953;
(vi) the Medicinal and Toilet Preparations (Excise Duties) Act, 1955;
(vii) the Additional Duties of Excise (Goods of Special Importance) Act, 1957;
(viii) the Mineral Products (Additional Duties of Excise and Customs) Act, 1958;
(ix) the Sugar (Special Excise Duty) Act, 1959;
(x) the Textiles Committee Act, 1963;
(xi) the Produce Cess Act, 1966;
(xii) the Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;
(xiii) the Coal Mines (Conservation and Development) Act, 1974;
(xiv) the Oil Industry (Development) Act, 1974;
(xv) the Tobacco Cess Act, 1975;
(xvi) the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;
(xvii) the Bidi Workers Welfare Cess Act, 1976;
(xviii) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;
(xix) the Sugar Cess Act, 1982;
(xx) the Jute Manufacturers Cess Act, 1983;
(xxi) the Agricultural and Processed Food Products Export Cess Act, 1985;
(xxii) the Spices Cess Act, 1986;
(xxiii) the Finance Act, 2004;
(xxiv) the Finance Act, 2007;
(xxv) the Finance Act, 2015;
(xxvi) the Finance Act, 2016;
(c) any other Act, as the Central Government may, by notification in the Official Gazette, specify.
◊ This Scheme will be applicable to any person who is liable to pay central excise, service tax or any cess under the act so specified. registered for any amount in arrears on account of:
◊ Tax Dues Means?
Relief has been provided under the scheme to pay certain duty on withdrawing all the litigations and get the relief of specified amount of duty demanded, which has been given in the following table, needless to say , when duty demand and penalty is also levied, if such person opt for the scheme and pays specified duty, he gets the relief of balance duty and penalty also.
|Particulars||Duty||Required to be paid||Relief|
|Show Case Notice or Appeals as on 30th June 2019||Rs. 50 Lacs or less||30%||70%|
|Show Case Notice or Appeals as on 30th June 2019||More than Rs. 50 Lacs||50%||50%|
|Show Case Notice for Late Fees||Any Amount||0%||100%|
|Amount of arrears||Rs. 50 Lacs or less||40%||60%|
|Amount of arrears||More than Rs. 50 Lacs||50%||50%|
|During Audit / Investigation||Rs. 50 Lacs or less||30%||70%|
|During Audit / Investigation||More than Rs. 50 Lacs||50%||50%|
Immunity after Discharge Certificate:
Introduction of this scheme is the most welcome step to reduce from number of litigations and get the relief. Every taxpayer has to introspect, and re-visit all pending litigations and determine for opting under the scheme for such cases, where there are little bit chances also to lose.
It is the golden opportunity for each taxpayer to minutely study existing disputes including arrears, litigations and opt for the scheme.