CBIC issues clarifications on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The Central Board of Indirect Taxes through its Circular dated 12th December 2019, has issued another set of clarifications on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in respect of the scheme applicable to various enactments, adjustment of amount paid as pre-deposit, declaration, discharge certificate, etc.

Key Highlights from the clarification:

  • Section 124(2) of the Scheme provides for adjustment of any amount paid as pre-deposits but does not talk about the amount paid after the issuance of show cause notice but before adjudication, that may have not been appropriated due to pendency of adjudication proceedings.
  • Therefore it is clarified that such deposit can be deducted/adjusted while issuing the statement indicating the amount payable by the declarant.
  • Further the deposits made during enquiry, investigation or audit etc. made ‘under protest’ needs to be adjusted by the designated committee in order to determine the final amount payable by the declarant. As per Section 130(2) of the Scheme there is no question of refund of any excess deposit in any case.
  • CBIC Clarifies eligibility under the scheme for some categories such as litigation, audit, enquiry etc, in which the tax due is quantified on or before 30th June.
  • It is clarified by CBIC that the taxpayer has the option to file separate declarations for each para or to file a declaration for two or more paras together.
  • With regard to the Section 129 which provides that a discharge certificate issued with respect to the amount payable under this scheme shall be conclusive as to matter and time period stated therein and the declarant shall not be liable to pay any further duty, interest or penalty with respect to the matter and time period covered in the declaration. It has been brought to the notice of the Board that in some cases, during the subsequent investigation, it is discovered that the taxpayer has declared and paid lesser duty in the returns filed.
  • Therefore, on the conclusion of investigation, etc., a show-cause notice is issued demanding the differential duty. It is clarified that ‘matter’ under Section 129 means a case for which the taxpayer intends to file a declaration under the Scheme. In the instant case, a ‘return filed but duty not paid’ is a separate matter and the SCN issued for ‘differential amount’ is a separate matter.

Click here to read the Notification.