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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 ..... pute 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 to make a new beginning, and focus on GST. 3. Dispute resolution and amnesty are the two components of this Scheme. The dispute resolution component is aimed at liquidating the lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 amount of duty being litigated is either because the show cause notice was only for penalty or because the duty was deposited at any subsequent stage, and only penalty is being contested, then the taxpayer does not need to deposit anything to settle his case. However, the taxpayer would have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 entails a full waiver from prosecution as well. The only exception is in case of a taxpayer's voluntary disclosure of liability as there is no way to verify its correctness, so a provision is made to reopen such declaration within one year of issue of a discharge certificate, if subsequently any material particular is found to be false. 8. More ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued 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'. In other words, if a person has been issued a show cause notice for a refund/erroneous refund and, at the same time, he also has other outstanding disputes which are covered under this Scheme, then, he will be eligible to file a declaration(s) for the other case(s). Same position will apply to persons covered under Sections 125(1)(a), (b), (c), (e) and (g). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 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 due to order of the Commission not being passed within the prescribed time etc. It is clarified that all such cases which are outside the purview of the Settlement Commission shall be covered under the Scheme under the relevant category of adjudication or appeal or an-ears as the case may be provided the eligibility is otherwise established under this Scheme. Further, any pending appeals, reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from main taxpayer and proposing penal action against co-notices, it is clarified that the co- notices can't avail the benefits of the scheme till such time the duty demand is not settled. Once, the main-notice discharges the duty demand, the co-notices can apply under this Scheme. This will also cover cases where the main notice has settled the matter before the Settlement Commission and paid the dues and in which co-notices were not a party to the proceedings before the Settlement Commission. (j) Section 127(5) of the Scheme provides that the declarant shall pay the amount indicated in the Statement issued by the Designated Committee within a period of thirty days. If the declarant does not pay the amount within the stipulated tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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