November 26, 2019

Out-reach Program by CBIC under Sabka Vishwas Legacy Dispute Resolution Scheme, 2019

Mid of the year 2019, Central Board of Indirect Taxes & Customs (“CBIC”) introduced “Amnesty Scheme” by the name of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (“SVLDRS” or “Scheme”)” vide Chapter V of Finance Act, 2019 wherein Government has provided option to resolve litigation pending under Central Excise Act, Finance Act, 1994 and other notified acts by way of granting partial waiver from liability of tax, interest, and penalty.

Accordingly, Scheme provides an option to taxpayer to resolve pending dispute by way of paying partial liability of applicable taxes.

Taxpayer was eligible to opt benefit of scheme only where SCN involving duty along with interest/latefee/penalty (if any) pending as on 30.06.2019 and final hearing not held before 30.06.2019 and other cases pending on 30.06.2019.

However, considering the fact that lesser number of eligible taxpayers have opted for such scheme, Special Secretary & Member of Ministry of Revenue, Mr. Sandeep M. Bhatnagar, has issued notice to CBIC officers dated 30^th October, 2019 to start a out-reach program under Scheme.

Following points have been mentioned order:

Except in case of voluntary disclosure, information regarding all taxpayers who are eligible to opt SVLDR scheme is available on with jurisdictional officers

So far, 1.8 lakhs cases have been reported as eligible taxpayers by jurisdictional officers including recurring demand notices. Therefore, actual number of eligible taxpayers or potential declarant linked to scheme is far less.

Show Cause Notice issued on or after 1^st July, 2019 (and not covered by any of other existing categories such as pending investigation or audit or enquiry is not pending as on 30^th June, 2019) are not covered under this scheme. However, such cases may get covered under “Arrears” category in the event duty/taxes get confirmed in adjudication as per due process and the taxpayer decides not to file an appeal subject to fulfillment of other conditions of scheme.

Accordingly, number of eligible taxpayers may increase substantially and can help in achieving the benefit of scheme.

Accordingly, Mr. Sandeep M. Bhatnagar will monitor the progress under the scheme personally and requested all jurisdictional officers to send a fortnightly report.

In view of above, following taxpayer can also opt for the scheme-

Who has pending investigation, audit or enquiry where tax demand not qualified up to 30^th June 2019.

To whom show cause notice has been issued after 30^th June 2019.

The above cases may get covered under “Arrears” category in the event duty/taxes get confirmed in adjudication as per due process and the taxpayer decides not to file an appeal subject to fulfillment of other conditions of scheme.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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