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 ..... tral Board of Indirect Tax and Customs vide F. No. 267/78/2019/CX-8-Pt. III the details as under: The Government has announced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 as a part of the recent Union Budget. Further, in accordance with the Finance (No. 2) Act, 2019, the Central Government has notified the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 as well as issued Notification No. 04/2019 Central Excise- NT dated 21.08.2019 to operationalize this Scheme from 01.09.2019 to 31.12.2019. 2. As may be appreciated, this Scheme is a bold endeavor to unload the baggage relating to the legacy taxes viz. Central Excise and Service Tax that have been subsumed under GST and allow business t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is more than ₹ 50 lakhs. (c) In cases of voluntary disclosure of duty not paid, the full amount of disclosed duty would have to be paid. (d) There will be full waiver of interest and penalty under all the categories of cases, as at (a) to (c) above. 5. The relief under this Scheme is illustrated, as follows: (i) If the amount of duty (including CENVAT credit) being litigated is ₹ 50 lakhs, then the taxpayer only needs to pay only ₹ 15 lakhs to settle his case. (ii) If the amount of duty (including CENVAT credit) being litigated is ₹ 1 crore, then the taxpayer only needs to pay only ₹ 50 lakhs to settle his case. (iii) If the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Settlement Commission. 7. Once the declarant produces the proof of payment and withdrawal of appeal in High Court and Supreme Court, if applicable, for in cases of lower forums the Scheme provides for deemed withdrawal of appeal, a discharge certificate will be issued indicating a full and final closure of the proceedings in question for both the Department and the taxpayer. It merits mention that every discharge certificate shall be conclusive as to the matter and time period stated therein. The declarant shall be not be liable to pay any further duty, interest or penalty. No matter and time period covered under a discharge certificate shall be reopened in any other proceedings under the said indirect tax enactments. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same period. It is clarified that similar position will apply in case of Department also. In other words, a declaration under this Scheme will not be a basis for assuming that the declarant has admitted the position, and no fresh show cause notice will be issued merely on that basis. (b) Section 125(1)(d) mentions that the Scheme is not available to an applicant who has been issued a show cause notice relating to refund or erroneous refund. It has potential to lead to an interpretation that such persons will not be able to opt for the Scheme for any other dispute as well, since the restriction is on the person in place of the case . It is clarified that the exception from eligibility is for the case and not the person . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o covered under Section 124(1)(b). (e) In case of appeals, the applicant is ineligible to apply if the final hearing is concluded but the order is awaited as on 30.06.2019. The hearings in matters are typically rescheduled even after the final hearing due to new bench, change in officer or any other reason. It is clarified that this restriction will apply to only those cases, where the appellate forum has heard the matter finally as on 30.06.2019. (f) Section 125(g) excludes the cases where an application has been filed before the Settlement Commission for settlement. However, in many such cases, proceedings before the Commission may abate due to reasons such as rejection of the application by the Commission or d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show cause notice. (i) Section 124(1)(b) provides that where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil , then, the entire amount of late fee or penalty will be waived. This section, inter alia, covers cases of penal action against co-noticees. In case of a show cause notice demanding duty/tax from main taxpayer and proposing penal action against co-noticees, it is clarified that the conoticees can t avail the benefits of the scheme till such time the duty demand is not settled. Once, the main-noticee discharges the duty demand, the co-noticees can apply under this Scheme. This will also cover cases where the main notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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