Ministry of Finance
Sabka Vishwas – Legacy Dispute Resolution Scheme
Posted On: 25 NOV 2019 5:15PM by PIB Delhi
The aim of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is to help taxpayers, including small taxpayers, in clearing the baggage of disputes under legacy taxes (Service Tax and Central Excise), which are subsumed in Goods and Service Tax. This was stated by Shri Anurag Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.
The main components of the Scheme are dispute resolution and amnesty. The number of applications received from taxpayers, including small taxpayers, and disputes resolved as on 18.11.2019 are as under:
| Application Received | Application Accepted | ||
| No. | Amount (In Crores) | No. | Amount (In Crores) |
| 26142 | 16007.01 | 2828 | 162.15 |
*(The data on the Scheme is not being compiled State wise.)
The total number of pending cases of Central Excise and Service Tax is as under:
| Year | No. of Cases |
| 2017-18 | 177604 |
| 2018-19 | 166869 |
| 2019-20 (till Oct) | 168114 |
The Minister stated that the Government has enhanced the monetary limits for filing of appeal by the department in Central Excise and Service Tax cases. Further, two benches in the Supreme Court and one bench each in the High Courts of Delhi, Gujarat, Mumbai and Madras have been constituted to hear taxation matters. This will help in early disposal of pending cases. The scheme is in force from 1.09.2019 till 31.12.2019.
In order to reduce/eliminate the pendency of legacy disputes under erstwhile Service & Central Excise, it is utmost necessary to speed up the working of Tribunals and Larger Bench as well. CESTAT Chandigarh is operating with just single member, what to think of double bench and even larger bench to clear the cases referred and pending since long.
Working of Tribunals and Larger Bench need to be enhanced even by putting extra personnel’s and/or extra working hours, or alternative offering more liberal schemes say by paying just 15-20% of demand quantified.
Another issue need clarification is that in some cases demand has been quantified by authorities without allowing CENVAT available and the trade has preferred to go for appeal. In such cases the clarification/amendment need to be issued by authorities that cases pending in appeal be also allowed to avail the SVLDRS, after deducting/adjusting the CENVAT available, which may be verified, if needed by concerned authorities.
Such cases can comfortable be cleared and the will reduce the legacy dispute under Central Excise.