Sabka vishwas (Legacy resolution dispute scheme 2019) and its procedure by Notification 05/2019 of Central Excise, NT dt 21.08.19

Introduction-

It was announced in the Finance Budget 2019, for  cases pending during Pre-GST regime in adjudication or appeal at any forum, this scheme offers a relief of 70 per cent from the duty demand if it is up to Rs 50 lakh and 50 per cent if it is over Rs 50 lakh.

In cases of confirmed duty demand, where there is no appeal pending, the relief offered is 60 per cent if the duty is up to Rs 50 lakh and 40 per cent if the duty is over Rs 50 lakh.

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019- Image 2

Procedure for Settlement of dispute under Sabka vishwas legacy resolution dispute scheme 2019 (SVLDRS)

  • It will start from 1st September 2019 and end on 31st December 2019, following are the procedural steps as specified in Notification 05/2019 of Central Excise, NT dt 21.08.2019
  • Electronic-Application in Form SVLDRS-1 before the designated committee.
  • Designated Committee after verification , ascertains that the amount payable equals to the amount Declared by Applicant, also if Amount payable is Nil, then applicant must submit the proof of withdrawal of appeal and obtain a discharge certificate in FORM SVLDRS-4 within 30 days.
  • However if amount payable is not Nil , then applicant must submit SVLDRS-3 Statement and must make E-payment within 30Days, also must submit a proof of withdrawal of appeal and obtain a discharge certificate in Form SVLDRS-4 within 30 days.
  • On the other hand, if Designated Committee verifies that ,  the amount payable does not equals to the amount declared  by Applicant, then applicant must submit FORM SVLDRS-2 to be issued within 30days of specifying  the amount payable. If agreed then  make e- payment within 30 days and submit a proof of withdrawal of appeal , also obtain a discharge certificate in FORM SVLDRS-4 within 30 days.
  • However, if not agreed with amount payable as mentioned in FORM SVLDRS-2 , then must submit written submission in Form SVLDRS-2A, attend personal hearing and within 60 days SVLDRS-3 Statement to be passed(order).

Conclusion-

On execution of this scheme, it will wipe out pending litigation during Pre-GST regime by relief from payment of tax dues to the extent of 50% to 70%  of the tax dues depending upon the amount of tax dues, relief from Payment of interest and penalty and not liable to prosecution also. Hoping it to be ultimate advantage for tax payers.

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