TMI BlogSabka Vishwas (Legacy Dispute Resolution) Scheme, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... th August, 2019 on the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 . Subsequently, the Board has received references from field formations as well as from the trade seeking certain clarifications on the Scheme. 2. The references received by the Board have been examined, and the issues raised therein are clarified in the context of the various provisions of the Finance (No.2) Act, 2019 and Rules made thereunder, as follows: (i) Only the persons who are eligible in terms of Section 125 can file a declaration under the Scheme. The eligibility conditions are captured in Form SVLDRS-1 (Sr. No. 8). The system automatically disallows persons who are not eligible from filing a declaration. However, there is a pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular No. 1009/16/2015-CX dated 23-10-2015 should be followed for withdrawal of prosecution after issuance of discharge certificate. (iii) One of the category of cases for which a declaration can be made under the Scheme is where the declarant has filed a return but not paid duty. It is possible that a taxpayer may not have paid duty in case of multiple returns. It may be noted that Rule 3 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 provides that a separate declaration shall be filed for each case. Further, in terms of the Explanation to Rule 3, in case of arrears, a case means an amount in arrears . Section 121(c)(iii) defines an amount in arrears as the duty recoverable on account of the decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has outstanding arrears of confirmed duty demand of ₹ 1 crore apart from ₹ 20 lakh penalty and interest as applicable. He has already paid ₹ 1 cr towards duty. So, the amount of tax dues is zero, and the amount payable under the Scheme is zero. (v) It may so happen that on being pointed out by audit etc, the taxpayer may in some cases deposit the duty without interest. In such cases, a Show Cause Notice is generally issued for appropriating the duty deposited and demanding the applicable interest. It is clarified that such cases are covered under the Scheme. However, in no case will a refund of the duty paid be made to the taxpayer. (vi) Section 125(1)(f) bars a person from making voluntary disclosur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling of appeal or the order in appeal having attained finality. There may be situations where the taxpayer does not want to file an appeal even though the time period for filing of appeal is not over. It is clarified that in such cases, the taxpayer can file a declaration under the Scheme provided he gives in writing to the department that he will not file an appeal. This declaration shall be binding on the taxpayer. 3. Difficulty if any, in implementation of this Circular may be brought to the notice of the Board. Yours sincerely, (Navraj Goyal) OSD(CX) - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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