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Society for Tax Analysis & ResearchNew Delhi
Friday, 26th August, 2019
Date of commencement
Sabka Vishwas - Legacy Dispute Resolution
Scheme 2019 to be operationalized from 1st
September, 2019. The Scheme would
continue till 31st December 2019. [Press
Release dated 22nd August, 2019]
This scheme provides filing of declaration
electronically at http://cbic-gst.gov.in
Legal Provisions relating to the Scheme
Legal Provisions
Section 120 to Section 135 added in Chapter V of the Finance Act, 2019
(Chapter related to Service Tax Provisions)
Rules relating to the Scheme notified vide
Notification No. 5/2019-Central Excise (NT) dated
21.08.2019
Notification No. 4/2019-Central Excise (NT) dated 21.08.2019 notifies the
date of commencement as 1st September, 2019
Enactments covered under this Scheme
The Scheme is applicable to 29 Acts but the acts for which we are
mainly concern are:
Note:
Please note that it is the
Scheme issued by Central
Government & hence,
VAT/CST law are not
covered under this Scheme
and State Government
can issue such a Scheme
separately for VAT law.
Central Excise Act, 1944
Central Excise Tariff Act, 1985
Service tax provisions as contained in chapter V of the Finance Act, 1994
Overview of the Scheme
3. Any number of declaration can be filed
by a declarant
8. Discharge certificate for full and final
settlement of tax due shall be issued to the
declarant
5. The amount of tax to be paid is estimated by
the designated committee and is communicated
to the declarant in the prescribed manner.
7. Declarant shall deposit the tax due amount
as finally determined by the designated
committee and give its proof to the authority
6. This estimation would be finalized through
proceeding and final payable amount would
be communicated to the declarant.
2. A declarant has to file a separate application
for each case. One case one declaration
4. No amendment, revision or correction can
be made in the application once filed by the
declarant
1. This scheme covers pending legal disputes,
enquiry or investigation or audit, demand in arrears
and voluntary disclosures cases pending as on
30.06.2019
Litigation/SCN Cases
Investigation/Audit Cases
Demand-in-Arrears Cases
Voluntary Disclosure Cases
Types of Cases covered under the Scheme
Litigation/SCN Cases
Meaning Cases where appeal is pending orSCN proceeding is going on and is stillpending as on 30.6.2019 meaningthereby final hearing has not yettaken place on or before 30.06.2019and matter is under litigation beforeany Appellate forum. Appellate forummeans the Supreme Court, the HighCourt or the CESTAT Tribunal orCommissioner (Appeal).
Example: Against the total demandof Rs. 100/- the assesse got relief ofRs. 40/- under 1st appeal and filedfurther appeal against balancedemand of Rs. 60/-. Also, departmentfiled appeal for relief of Rs. 25/- anddepartment appeal as well as assesseappeal bot are pending on 30.06.2019then in such a situation tax dueswould be Rs. 85/-(Rs. 60/- appeal bythe declarant plus Rs. 25/- appeal bythe department) against the onesingle order.
Tax
Du
es
In cases where single appeal arising out of an order is pending before Appellate forum before 30.06.2019 then tax dues means the
total amount of duty which is being disputed in the said appeal
In cases where multiple appeal (Declarant as well as department) arising out of an order is pending before Appellate forum
before 30.06.2019 then tax dues means the total amount of duty which is being disputed by the declarant as well as
department both.
Tax dues under Litigation
Example:
In case SCN issued to three persons
jointly or severally liable for an amount
of Rs. 600/- then one particular person
cannot say proportionately paying Rs.
200/- for discharge of his own duty even
if he is jointly or severally liable for the
same. If they want to avail the scheme
then either of the three jointly or severally
can discharge the liability by filing single
common application for entire amount of
Rs. 600/- as per the scheme.
Tax dues under SCN
In cases where SCN issued specifying the amount of tax due to
the declarant on or before 30.06.2019 then tax due means amount of duty stated to be payable by the declarant
in the said notice.
In cases where SCN issued making the declarant and other persons jointly and severally liable for an amount, the tax dues mean the amount indicated in the
said notice as jointly and severally payable to be taken as the amount of
duty payable by the declarant.
Tax Relief (Litigation/SCN)
Tax Relief
Tax due amount is upto Rs. 50
lakhs
Tax relief @ 70%
Tax due amount is more than Rs.
50 lakhs
Tax relief @ 50%
Pre-Deposit/ Stay amount under Litigation
In case declarant has paid any amount as pre-deposit/ stay amount at any stage of appellate proceeding then such amount is required to be deducted by calculating the balance amount payable under the scheme.
In case pre-deposit/ stay amount exceeds the amount determined to be payable under the scheme then declarant is not entitled to any refunds.
Any amount to be payable under the scheme is not allowed to be paid through ITC credit mechanism.
Not eligible to file declaration (Litigation/SCN)
The person whose appeal has already been heard finally on or before 30.06.2019 are
not eligible for this scheme
The person who has been issued a SCN and finally heard on or before 30.06.2019
The person who has been issued SCN for an erroneous refund or claim of refunds
Investigation/Audit cases
Meaning
Cases of Enquiry, Investigation or Audit where
proceedings are initiated and amount has been
quantified on or before 30.06.2019, such cases are
covered under this head. This term means any
scrutiny, verification and checks carried out as per
the Act. Enquiry or Investigation includes search of
premises, issue of summon, requiring the production
of accounts or other evidence, recording of
statements etc.
Tax Dues
Under the pending cases of enquiry/
investigation/ audit the amount of duty
payable means as quantified on or before
30.06.2019 while initiating the
proceeding under the Act.
Tax Relief
Tax relief @ 70% if tax due amount is
equals to or less than Rs. 50 lakhs but the
relief would be restricted to 50% if tax
due amount is more than Rs. 50 lakhs in
case of Enquiry, Investigation or Audit
cases.
Investigation/Audit cases
Demand-in-Arrears cases
Meaning
Cases where demand is created and are still pending and even not under litigation before
any Appellate forum are known as demand-in-arrears cases.
Tax Dues
In such cases pending demand-in-arrears are the tax due under the scheme.
Tax Relief
Tax relief @ 60% if tax due amount is equals to or less than Rs. 50 lakhs but the relief
would be restricted to 40% if tax due amount is more than Rs. 50 lakhs in case of tax
demand-in-arrears.
Meaning
It refers to cases where the declarant is
neither into litigation nor in any other
proceedings and wants to disclose his
tax liability on his own thereby saving
himself from any future proceedings.
Not eligible to file declaration
The person should not be subject to
any Enquiry, Investigation or Audit
Voluntary Disclosure
Tax dues:
The amount of duty stated in the declaration are the tax
dues under this scheme.
Tax relief:
No relief of tax dues(declarant has to deposit 100% of
tax due) but immunity from interest, penalty, late
fee or prosecution. Whatever amount is disclosed
under the scheme is required to be deposited as
per the scheme.
Voluntary Disclosure
Declaration in respect of Interest, Penalty or late fees
The disputes pending under
litigation/SCN or quantified under
investigation/audit or in arrears or
voluntarily against demand of interest,
penalty or late fees, then declarant has to
file an application electronically for
waiver of 100% of interest, penalty or
late fees whatever is pending as on
30.06.2019.
Other non-eligible persons
The person who has been convicted
of any offence punishable under any provision of the Act for the
matter for which he intends to file a
declaration under the scheme
The person who has filed an
application in the settlement
commission.
The person had filed the return and
indicated the amount payable in the return but has
not paid in the return.
The person who seeks to make declaration under the
scheme with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (Like tobacco and manufactured tobacco
substitutes, mineral fuels, mineral oils and product of
their distillation, bituminous substances and
mineral waxes)
1 Form SLVDRS-1
Application for opting the scheme
2 Form SLVDRS-2
Estimate of tax due as determined by designated authority & intimated todeclarant
3 Form SLVDRS-2A
Declarant may agree with estimate or otherwise disagree and can give writtensubmissions, waiver of personal hearing or can seek one time adjournment
4 Form SLVDRS-2B
To communicate date of personal hearing on adjournment application
5 Form SLVDRS-3
Final determination of tax payable by designated authority to be communicated tothe declarant on the basis of personal hearing and documents on records filed bythe declarant
6 Form SLVDRS-4
Discharge certificate for full and final settlement of tax dues under the Scheme
Forms prescribed under the Scheme
Declarant shall filean application inSLVDRS-1 between01.09.2019 to31.12.2019
Designated Authorityshall verify the contentof the application &estimate the taxpayable in all casesother than voluntarydisclosure cases
If amount declared astax due & estimatedby the authority arethe same then FormSLVDRS-3 be issuedwithin 60 days
If declared amount isless than estimatedamount then SLVDRS-2shall be issued to thedeclarant within 30days
Declarant will fileSLVDRS-2A forwritten submission,waiver of personalhearing,adjournment onetime if required
After hearing thedeclarant an e-statement in SLVDRS-3shall be issued within60 days for finaldetermination of taxpayable
On payment and production ofproof of withdrawal of appeal,the committee shall issuedischarge certificate in SLVDRS-4 within 30 days
Within 30 days of issuance ofdischarge certificate the designatedcommittee can modify its orderonly to correct an arithmetical orclerical error if any in it
Auto-acknowledgementbearing uniquereference numberto be generated bythe system
Declarant willgive hisjustificationthrough personalhearing throughSLVDRS-2B
Procedure for filing of various forms
The declarant shall pay the taxelectronically as finallydetermined by the designatedauthority within 30 days ofissue of SLVDRS-3
Declarant shall filean application inSLVDRS-1 between01.09.2019 to31.12.2019
Designated Authorityshall verify the contentof the application &estimate the taxpayable in all casesother than voluntarydisclosure cases
If amount declared astax due & estimatedby the authority arethe same then FormSLVDRS-3 be issuedwithin 60 days
If declared amount isless than estimatedamount then SLVDRS-2shall be issued to thedeclarant within 30days
Declarant will fileSLVDRS-2A forwritten submission,waiver of personalhearing,adjournment onetime if required
After hearing thedeclarant an e-statement in SLVDRS-3shall be issued within60 days for finaldetermination of taxpayable
On payment and production ofproof of withdrawal of appeal,the committee shall issuedischarge certificate in SLVDRS-4 within 30 days
Within 30 days of issuance ofdischarge certificate the designatedcommittee can modify its orderonly to correct an arithmetical orclerical error if any in it
Auto-acknowledgementbearing uniquereference numberto be generated bythe system
Declarant willgive hisjustificationthrough personalhearing throughSLVDRS-2B
Disclaimer
The materials provided in this presentation and any comments or
information provided by the presenter are for educational
purposes only and nothing conveyed or provided should be
considered legal, accounting or tax advice. Presenter shall not be
liable for any damages of whatsoever nature due to any action
taken on the basis of this presentation.
