SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019, Central Excise

[CA.LALIT MUNOYAT]

05-12-19

If a main noticee has dues of excise duty, penalty, interest etc. There are 5 Co-Noticees on each of whom personal penalty of ₹ 5 lakhs has been levied. The main noticee is not traceable or is not willing to pay the duty or he does not wish to withdraw his appeal from the CESTAT. All the Co-Noticees wish to file declaration under the scheme for waiver of personal penalty. FAQ No. 23 provides that if the main noticee pay the dues then Co-Noticees can avail of this scheme. However it has not explicitively banned the Co-Noticees to avail the scheme independently of the main noticee and file under the scheme irrespective of the action of the main noticees. Can the Co-Noticees apply for the amnesty under the scheme?

Expert advice is highly solicited

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

As per the answer provided to question No. 203 of Frequently Asked Questions (FAQs) relating to SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019 "In case of a SCN issued to an assessee demanding duty/tax and also proposing penal action against him as well as separate penal action against the co-noticee/s specified therein, if the main noticee has settled the tax dues, the co-noticee/s can opt for the Scheme for the waiver of penalty. For instance, the main noticee has settled the matter before the Settlement Commission and paid the dues and the co-noticees were not a party to the proceedings. In such a case, the co-noticees can file a declaration under the Scheme. Similarly, in a case of arrears, where the main noticee has paid the duty, the co-noticees can file a declaration under the Scheme.The pre-condition for the co-noticees to avail the scheme is that the main noticee had settled the tax dues. In your case the main noticee is not traceable or is not willing to pay the duty or he does not wish to withdraw his appeal from the CESTAT. Therefore, in my opinion the co.noticees are not eligible to avail the scheme. Only remedy available is you have to move the jurisdictional High Court under Art. 226 of Constitution of India through a writ petition.

[KASTURI SETHI]

Not eligible for the Amnesty Scheme (SVLDRS, 2019). Clear-cut and comprehensive reply Sh.Ranganathan, Sir.

[Devendr Saraf]

Three similar matters pending before Hon'ble Gauhati High Court where conoticees declaration has been rejected and vires of circular dated 27.8.20 have been challenged...