Arjun (Fictional Character): Krishna, Ashadhi Ekadashi, which is one of the most celebrated eve of Maharashtra has just passed. All the worshippers have prayed Lord Vitthal for prosperity and relief from problems. Similarly, Union Budget, 2019 has given an opportunity to taxpayers facing litigations of indirect taxation to get rid of all such litigations. So, what relief has been given by Government to such taxpayers?
Krishna (Fictional Character): Arjun, A very unique and substantial relief scheme named as “SABKA VISHWAS LEGACY DISPUTE RESOLUTION SCHEME” has been proposed. The focus of the government will be to reduce the pending litigations of 28 plus pre-GST laws, the government has proposed a Dispute Settlement Scheme for speedy settlement of pending litigations and to remove the funds blocked in the litigations. Approx 3.75 Lakhs Crore of revenue is blocked in this litigations. This is one of the most beneficial scheme ever made in the history of Indirect tax by Central Government.
Arjun: Krishna, Which type of laws are covered in this scheme?
Krishna: Arjun, The laws covered under this scheme includes 28 plus pre-GST laws. The prominent laws being Central Excise Act, Additional Duties of Excise (Goods of Special Importance) Act, Agricultural Produce Cess Act, etc. before scheme details for further information.
Arjun: Krishna, What is meaning of tax dues under this scheme?
Krishna: Arjun, tax dues under this scheme means dues which are pending as on 30 June, 2019 :
- a single appeal arising out of an order is before the appellate forum, the total amount of duty which is being disputed in the said appeal;
- more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are before the appellate forum, the sum of the amount of duty which is being disputed by the declarant in his appeal and the amount of duty being disputed in the departmental appeal
Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019.
Arjun: Krishna, Which taxpayers would be given an opportunity to settle dues under this scheme?
Krishna: Arjun, all taxpayers would be given an opportunity to settle dues under this scheme except the following:
1. Persons whose issue in appeal/show cause notice has been heard finally upto 30th June 2019;
2. Persons convicted for offence for the matter for which declaration is to be filed;
- Persons who have received showcause notice for erroneous refund or refund;
1. Persons who have been subject to enquiry/investigation/audit and duty amount is not quantified upto 30th June 2019;
2. Persons making voluntary disclosure after initiation of enquiry/ investigation/ audit;
3. Persons making voluntary disclosure, who have admitted tax liability in return filed but not paid such liability;
- Persons who have filed application before Settlement Commission for settlement of case;
- Persons seeking to make declaration in respect of excisable goods in 4th Schedule of Central Excise Act, 1944.
Arjun: Krishna, What are the reliefs available under this scheme?
Krishna: Arjun, reliefs available under this scheme are as follows:
| Description | Relief Available for amount of duty | |
| Rs. 50 Lakhs or Less | More than Rs. 50 Lakhs | |
| Show Cause notice issued and case is pending for hearing as on 30th June 2019 | 70% | 50% |
| Appeal is filed and case is pending for hearing as on 30th June 2019 | 70% | 50% |
| Enquiry/investigation/audit conducted with tax demand quantified upto 30th June, 2019 | 70% | 50% |
| Tax dues are related to ‘amount in arrears’ | 60% | 40% |
| Tax dues are on account of voluntary disclosure | NIL | NIL |
| Show cause notice issued for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil | 100% (of Penalty/ Late Fee) | 100% (of Penalty/ Late Fee) |
*Note: The taxpayers applying for the scheme would get 100% relief from interest and penalty
Arjun: Krishna, what should the taxpayer learn from this?
Krishna: Arjun, The taxpayers should wait for further notifications and circulars to come in this regards. This is one of the most beneficial scheme ever made in the history of Indirect tax by Central Government.
Author Bio
Hello Sir,
I have paid service taxes completely but there used to be delay in payment, sometimes 2 – 3 months, but have been paid. Recently, one of the superintendents told me I will have to pay interest for the delay in payments made. Will I be eligible to be waived off with the penalty in my case since 100% service taxes have been paid. If yes, then how should I convince him as I mentioned about this scheme to him and he said that wouldn’t be applicable to me.
Please advice.
Regards,