The Central Board of Indirect Taxes and Customs in its circular dated 29th October 2019, has clarified that taxpayers could avail the benefits of Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (SVLDRS) provided they withdraw appeals filed after June 2019.
The Central Board of Indirect Taxes and Customs issued the the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules on 21st August 2019. The major component of the scheme was dispute resolution, aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums.
The circular enables tax payers to avail the scheme under following circumstances:
- The circular also stated that the taxpayers would be eligible for relief under SVLDRS in cases where the final audit report has been issued on or before 30 June 2019 as the tax demand has been quantified.
- Under voluntary Disclosure category, the scheme makes two exclusions
- Not being subjected to an enquiry or investigation or audit
- Having already filed a return but not paid the duty declared therein
- It has been clarified that declarations made under this category shall be accepted without recourse to determine the eligibility, as the scheme provides ample safeguards for taking suitable action in case of false declaration of any material particulars.
- One of the category of cases in which a party has filed an ST-3 (Half Yearly) Return and also paid the dues in full before filing the application but still wants to avail the benefits under the scheme for interest in the late paid dues is eligible. In this context it is clarified that a separate declaration has to be filed for each return on or before 30th June 2019 but duty not paid, or in other words, for the purpose of application of tax relief, each return will be taken individually even though single estimate/statement shall be issued for a declaration.
- Further it is clarified that in order to avail the scheme where appeals were filed after 20th June 2019, one shall withdraw those appeals and furnish an undertaking to the department that he will not file any appeal.
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