{"id":202,"date":"2020-01-08T08:42:38","date_gmt":"2020-01-08T08:42:38","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=202"},"modified":"2020-12-28T07:57:19","modified_gmt":"2020-12-28T07:57:19","slug":"sabka-vishwas-legacy-dispute-resolution-scheme","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/sabka-vishwas-legacy-dispute-resolution-scheme\/","title":{"rendered":"Sabka Vishwas Legacy Dispute Resolution Scheme"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Introduction<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">In theUnion Budget 2019-20, the Honourable Finance Minister Shrimati Nirmala Sitharaman announced the Sabka VishwasLegacy Dispute Resolution (SVLDR) Scheme, 2019, a <strong>one-time measure<\/strong> for liquidation of past disputes of Central Excise and <strong><a href=\"https:\/\/www.akgvg.com\/taxation\">Service Tax<\/a><\/strong> as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. The scheme provides that eligible persons shall declare the unpaid tax dues and pay the same in accordance with the provisions underlaid in the scheme. The scheme also provides substantial relief in the tax dues for all categories of cases, full waiver of interest, fine, penalty, relief from additional liability of interest, fine or penalty along with amnesty from prosecution.The scheme is operationalized from <strong>1.09.2019 and would continue till 31.12.2019.<\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-883\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1707\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-scaled.jpg 2560w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-300x200.jpg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-1024x683.jpg 1024w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-768x512.jpg 768w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-1536x1024.jpg 1536w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2020\/01\/Sabka-Vishwas-Legacy-Dispute-Resolution-Scheme-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><b style=\"color: #000000;\">The scheme is available to the Central Excise Act, 1944 or Central Excise Tariff Act, 1985 or chapter V of the Finance Act, 1994 and 26 other Acts and Rules made <\/b><span style=\"color: #000000;\"><b>there-under<\/b><\/span><b style=\"color: #000000;\">.<\/b><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><span style=\"color: #000000;\"><strong>Components of the scheme:<\/strong><\/span><\/p>\n<p>\u2022 Dispute Resolution<\/p>\n<p>It is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in <strong><a href=\"https:\/\/www.akgvg.com\/gst-related-services\">GST<\/a> <\/strong>and are pending in litigation at various forums.<\/p>\n<p>\u2022 Amnesty<\/p>\n<p>It provides an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Benefits of the scheme:<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">The various benefits available under the Scheme are:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Total waiver of interest and penalty<\/span><\/li>\n<li><span style=\"color: #000000;\">Immunity from prosecution<\/span><\/li>\n<li><span style=\"color: #000000;\">Reopening shall not be done in any other proceedings<\/span><\/li>\n<li><span style=\"color: #000000;\">Final decision will not be conferred without personal hearing<\/span><\/li>\n<li><span style=\"color: #000000;\">Proceedings under the applicable laws shall be started within a time limit of one year only if the declaration made under voluntary disclosure is proven false.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Relief under the scheme:<\/strong><\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td rowspan=\"3\" width=\"123\"><span style=\"color: #000000;\"><strong>Sub-Clause<\/strong><\/span><\/td>\n<td rowspan=\"3\" width=\"136\"><span style=\"color: #000000;\"><strong>Tax Dues relatable to (clause 122)<\/strong><\/span><\/td>\n<td colspan=\"4\" width=\"493\"><span style=\"color: #000000;\"><strong>Relief Available (Clause 123)<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"246\"><span style=\"color: #000000;\"><strong>&lt;=50 Lacs<\/strong><\/span><\/td>\n<td colspan=\"2\" width=\"246\"><span style=\"color: #000000;\"><strong>&gt;50 Lacs<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\"><strong>Relief<\/strong><\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\"><strong>Tax Payable<\/strong><\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\"><strong>Relief<\/strong><\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\"><strong>Tax Payable<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\">a)<\/span><\/td>\n<td width=\"136\"><span style=\"color: #000000;\">Show cause Notice\/Appeal<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">70% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">30% of Tax Dues<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">50% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">50% of Tax Dues<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\">b)<\/span><\/td>\n<td width=\"136\"><span style=\"color: #000000;\">Show cause Notice for late fee or penalty only<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">100% of late fee\/ Penalty<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">NIL<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">100% of late fee\/ Penalty<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">NIL<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\">c)<\/span><\/td>\n<td width=\"136\"><span style=\"color: #000000;\">Inquiry, Investigation, Audit Pending &amp; Amount Quantified<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">70% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">30% of Tax Dues<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">50% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">50% of Tax Dues<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\">d)<\/span><\/td>\n<td width=\"136\"><span style=\"color: #000000;\">Voluntarily Disclosed<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">No Relief<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">100%<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">No Relief<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">100%<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000000;\">e)<\/span><\/td>\n<td width=\"136\"><span style=\"color: #000000;\">Amount in arrears<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">60% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">40% of Tax Dues<\/span><\/td>\n<td width=\"123\"><span style=\"color: #000000;\">40% of Tax Dues<\/span><\/td>\n<td width=\"124\"><span style=\"color: #000000;\">60% of Tax Dues<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong style=\"color: #000000; font-size: 14px; text-align: justify;\">Eligibility Criteria:<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td rowspan=\"2\" width=\"248\"><span style=\"color: #000000;\"><strong>Status of the matter<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><\/td>\n<td rowspan=\"2\" width=\"179\"><span style=\"color: #000000;\"><strong>Nature of Tax dues<\/strong><\/span><\/td>\n<td colspan=\"2\" width=\"315\"><span style=\"color: #000000;\"><strong>Tax Relief<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"154\"><span style=\"color: #000000;\"><strong>Tax dues of Rs. 50 lakhs or less<\/strong><\/span><\/td>\n<td width=\"161\"><span style=\"color: #000000;\"><strong>Tax dues of more than Rs. 50 lakhs<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 Where a show cause notice has been issued and which is pending as on 30.06.2019<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Duty or tax amount stated in the notice<\/span><\/td>\n<td rowspan=\"3\" width=\"154\"><span style=\"color: #000000;\">70% of the tax dues<\/span><\/td>\n<td rowspan=\"3\" width=\"161\"><span style=\"color: #000000;\">50% of the tax dues<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 Where one or more appeals arising out of a notice has been filed and the same is\/are pending as on 30.06.2019<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Duty or tax amount disputed in appeal<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 Where both, the assessee and the department have preferred appeal against an order and which are pending as on 30.06.2019<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Aggregate of duty or tax amount disputed in the appeals of the assessee and the department<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 Where an enquiry, investigation or audit is undertaken and the amount is quantified on or before 30.06.2019<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Duty or Tax amount quantified during such proceedings<\/span><\/td>\n<td width=\"154\"><span style=\"color: #000000;\">70% of the tax dues<\/span><\/td>\n<td width=\"161\"><span style=\"color: #000000;\">50% of the tax dues<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 In case of amount in arrears<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Duty or tax amount in arrears<\/span><\/td>\n<td rowspan=\"2\" width=\"154\"><span style=\"color: #000000;\">60% of the tax dues<\/span><\/td>\n<td rowspan=\"2\" width=\"161\"><span style=\"color: #000000;\">40% of the tax dues<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"248\"><span style=\"color: #000000;\">\u00d8\u00a0 In case of amount indicated as payable in return but not paid by the assessee<\/span><\/td>\n<td width=\"179\"><span style=\"color: #000000;\">Duty or tax amount indicated in the Return<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000000; font-size: 14px; text-align: justify;\">Apart from the above cases, scheme can also be availed in the following cases:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">A voluntary disclosure of tax liability by a registered or unregistered taxpayer.<\/span><\/li>\n<li><span style=\"color: #000000;\">A co-noticee in a show cause notice or order in original who is liable to pay only penalty of fine can also apply for full waiver of the penalty if he can prove that the main notice has discharged the full liability.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Exclusions of the scheme:<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Excisable goods from Fourth Schedule to the Central Excise Act, 1944.<\/span><\/li>\n<li><span style=\"color: #000000;\">Application in the settlement commission.<\/span><\/li>\n<li><span style=\"color: #000000;\">Convicted for any offence for the matter for which he intends to file a declaration.<\/span><\/li>\n<li><span style=\"color: #000000;\">Issued a SCN notice for erroneous refund or refund.<\/span><\/li>\n<li><span style=\"color: #000000;\">Voluntary disclosure after being subjected to any enquiry or investigation or audit &amp; filed a return, indicating duty as payable, but has not paid it.<\/span><\/li>\n<li><span style=\"color: #000000;\">Subjected to enquiry or investigation or audit &amp; duty involved has not been quantified on or before 30<sup>th<\/sup> June 2019.<\/span><\/li>\n<li><span style=\"color: #000000;\">Issued a SCN and final hearing has taken place on or before 30<sup>th<\/sup> June 2019.<\/span><\/li>\n<li><span style=\"color: #000000;\">Appeal before appellate forum and heard finally on or before 30<sup>th<\/sup> June 2019.<\/span><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><span style=\"color: #000000;\"><strong>Restriction of the scheme:<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Following restrictions have been placed under the scheme:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">a) Tax dues payable shall not be paid through input tax credit account.<\/span><\/li>\n<li><span style=\"color: #000000;\">b) Tax dues paid shall not be taken as input tax credit or entitle any person to take input tax credit as a recipient of excisable goods or taxable services.<\/span><\/li>\n<li><span style=\"color: #000000;\">c) Tax dues paid shall not be refundable under any circumstances.<\/span><\/li>\n<\/ul>\n<p><strong style=\"color: #000000; font-size: 14px;\">Declaration under the scheme:<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">A declaration is to be filed electronically, on or before the eligible scheme period in <strong>Form SVLDRS-1<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">On receipt of the declaration, the system will automatically generate a unique reference number.<\/span><\/li>\n<li><span style=\"color: #000000;\">The designated committee shall verify the declaration submitted, based on the particulars furnished by the declarant, and reconciling the same with records that are already available within the department.<\/span><\/li>\n<li><span style=\"color: #000000;\">A statement will be issued by the designated committee in <strong>Form SVLDRS-3<\/strong>, within a period of 60 days from the date of receipt of the declaration, with the particulars of the amount payable. If the amount payable is nil, and there is no appeal pending in either a High Court or the Supreme Court, then this statement will not be issued.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Actions by designated committee:<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">In cases where the estimated amount payable turns out to be more than what has been declared by the declarant, then the designated committee should issue an estimate of the amount payable in <strong>Form SVLDRS-2<\/strong> within 30 days of the receipt of the declaration. <strong>This wouldinclude an opportunity for a personal hearing.<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">If the declarant wishes to agree or disagree with the estimate calculated by the designated committee, to make any written submission, to waive the personal hearing, or to seek an adjournment, an application in\u00a0<strong>Form SVLDRS-2A<\/strong> shall be made indicating the same.<\/span><\/li>\n<li><span style=\"color: #000000;\">If the above form has not been filed, or if the declarant does not appear before the designated committee on the appointed date, then the committee will make its decision based on the records available.<\/span><\/li>\n<li><span style=\"color: #000000;\">The designated committee will have the power to modify its order and issue a revised Form SVLDRS-3 to correct an arithmetical or clerical error, which is apparent on the face of record. The modification has been done within 30 days of issuing the original Form SVLDRS-3.<\/span><\/li>\n<li><span style=\"color: #000000;\">The declarant is supposed to pay the amount indicated in Form SVLDRS-3, within 30 days from the date of its issue.<\/span><\/li>\n<li><span style=\"color: #000000;\">Once the designated committee has been satisfied that the declarant has paid the amount in full, it will issue a discharge certificate in Form SVLDRS-4 within 30 days of payment being made.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Things to remember:<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000;\">Separate declaration needs to be filed for each case to be resolved.<\/span><\/li>\n<li><span style=\"color: #000000;\">When applicable, proof of withdrawal of the appeal or writ petition filed before a High Court or Supreme Court needs to be furnished by the declarant.<\/span><\/li>\n<li><span style=\"color: #000000;\">The verification by designated committee shall not be done in cases of voluntary disclosure.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Payment under the scheme:<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">A challan can be generated by a link provided in the <strong>Form SVLDRS-3\u00a0<\/strong>issued by the department. Once the challan is generated, payment against the same can be made by the taxpayer.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>With Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, Indian government is looking forward to liquidate the huge outstanding litigation and free the tax payers from the burden of litigation and investigation under the legacy taxes.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><span style=\"color: #000000;\">This content is meant for information only and should not be considered as an advice or opinion, or otherwise. <strong><a href=\"https:\/\/www.akgvg.com\/\">AKGVG &amp; Associates<\/a><\/strong> does not intend to advertise its services through this.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>Posted by:<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">CA Mitika Batta<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">AKGVG &amp; Associates<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In theUnion Budget 2019-20, the Honourable Finance Minister Shrimati Nirmala Sitharaman announced the Sabka VishwasLegacy Dispute Resolution (SVLDR) Scheme, 2019, a one-time measure for liquidation of past disputes of Central Excise and Service Tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. The scheme provides&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,29,44,9],"class_list":["post-202","post","type-post","status-publish","format-standard","hentry","category-direct-tax","tag-central-excise-and-service-tax","tag-gst","tag-tax","tag-taxation"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=202"}],"version-history":[{"count":3,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/202\/revisions"}],"predecessor-version":[{"id":884,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/202\/revisions\/884"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}