Svdlr scheme 2019, Service Tax

[Mohammed Aslam]

Title: - Sab ka viswas (LDR) scehme 2019

In one case final hearing was held before 30-6-2019 and order passed in August 2019.This case will fall under the ineligible category in terms of sec 125(1)(a) of Finance Act(2) 2019 under the category of litigation.But the same wii fall under
elegible category under " an amount in arrears" in-terms of Section 121(c) of Finance Act 2019 read with Rule 3(2) (b) of SV(LDR) scheme Rules 2019 in as much as no dead line is fixed for "amount in arrears"

In my view, declaration has to be filed after completion of appeal period before 31-12-2019

Mohammed.Aslam

Posts / Replies

[Ganeshan Kalyani]

Yes, I agree with your understanding.

[KASTURI SETHI]

You are to follow the eligibility criteria provided under Section 125 (1). Section 121(c) neither helps you nor you should try.. Section 121 defines only terminology. Section 125 (1) is very much basis/yardstick whether declaration/application is to be accepted or not. Rules are subject to the Act.

[Mohammed Aslam]

The criteria provided under Section 125(1)(a) is for litigation cases. In this connection kind reference is invited to para 10(b) of Board’ circular No.10714/4/2019-CX 8 dated 27-8-2019,wherein it is clarified that the exception from eligibility is for the case and not the person and he will be eligible for other outstanding disputes .

In view of the above, declaration can be filed for the cases decided after 30-6-2019 after completion of appeal period.

Md.Aslam

[KASTURI SETHI]

Difference between 'a person' and ' a case' is undisputed.

[KASTURI SETHI]

Eligibility comes first and after qualifying the eligibility one can think about the category where under one falls. Both the terms, namely, 'eligibility' and 'category' have different meanings and one has to cross first the ladder of eligibility for entry into the scheme by way of filing declaration.

[Mohammed Aslam]

The elegibility criteria defined in Section 125(1)(a) is for different types of categories. Further CBIC has already claried that that case is different from person and started accepting such declarations under " arrears category". The CBIC has further clarified, in its circular dated 25-/9-2019, that one can apply for the scheme under arrears category without waiting for appeal period by filing a declaration that " no appeal will be filed".

In view of the above ,even the cases going to be decided on 31-12 -2019 and received by the applicant on 31-12-2019 are eligible for the scheme under" arrears category".

Iam afraid that no further discussion is required on the issue in view of the clarifications given by the CBIC.

Mohammad Aslam

[KASTURI SETHI]

Yes, the dust has been settled by the Board via circular. The situation warranted clarification. I agree with Sh.Mohammed Aslam.