Cenvat cases whether eligible under Legacy Dispute Resolution Scheme, Goods and Services Tax - GST

[RAJAGOPAL OBBAI]

Union Budget 2019 has introduced a Finance Bill 2019 in which in Chapter V it was stated Legacy Dispute Resolution Scheme (LDRS) will be applicable for excise duty and service tax related matters. Question is whether Cenvat related matters are covered under LDRS?

Posts / Replies

[KASTURI SETHI]

Yes. Whatever demand has been confirmed, dues are to be paid in cash and no further ITC is allowed on the amount of duty/ST deposited. Further we have to wait for enactment.

[RAJAGOPAL OBBAI]

Where does it flow from regulation that Cenvat was part of excise duty to cover under LDRS?

[KASTURI SETHI]

The assessees take Cenvat Credit of Central Excise duty paid on inputs/capital goods and take credit of Service Tax paid on input services. Duty paid through PLA and Cenvat Credit Account is at par. It has been held by CESTAT. The Department accepts it. What is most crucial is that threr must be correct PLA : CENVAT ratio. Value addition portion should come from PLA after adjusting credit on Capital Goods, Exported Goods/Services etc.

Duty paid character is same. Demand confirmed for reversal of credit is also demand of duty.