Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The Sabka Vishwas (Legacy Dispute Resolution) Scheme is 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 comes with a validity of 4 months starting from September 1, 2019 to December 31, 2019. It provides that eligible persons shall declare the tax dues and pay the same in accordance with the provisions of the Scheme. It further provides for certain immunities including penalty, interest or any other proceedings under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1944 to those persons who pay the declared tax dues.

Objectives

• One time measure for liquidation of past disputes of Central Excise and Service Tax
• To provide an opportunity of voluntary disclosure to non-compliant taxpayers.

Cases covered under the Scheme

• A show cause notice or appeals arising out of a show cause notice pending as on the 30th day of June, 2019 
• An amount in arrears
• An enquiry, investigation or audit where the amount is quantified on or before the 30th day of June, 2019
• A voluntary disclosure.

Exclusions from the Scheme

• Cases in respect of excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (this includes tobacco and specified petroleum products)
• Cases for which the taxpayer has been convicted under the Central Excise Act, 1944 or the Finance Act, 1944
• Cases involving erroneous refunds
• Cases pending before the Settlement Commission.

Benefits under the Scheme

• Total waiver of interest, penalty and fine
• Immunity from prosecution
• Cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is ₹ 50 Lakh or less and 50% if it is more than ₹ 50 Lakh
• The same relief for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019
• In case of an amount in arrears, the relief offered is 60% of the confirmed duty amount if the same is ₹ 50 Lakh or less and it is 40% in other cases
• In cases of voluntary disclosure, the declarant will have to pay full amount of disclosed duty.

Other features of the Scheme

• Facility for adjustment of any deposits of duty already made
• Settlement dues to be paid in cash electronically only and cannot be availed as input tax credit later
• A full and final closure of the proceedings in question. The only exception is that in case of
• voluntary disclosure of liability, there is provision to reopen a false declaration within a period of one year
• Proceedings under the Scheme shall not treated as a precedent for past and future liabilities
• Final decision to be communicated within 60 days of application
• No final decision without an opportunity for personal hearing in case of any disagreement
• Proceedings under the Scheme will be fully automated.

For more information:

visit : http://cbic.gov.in/htdocs-servicetax/Legacy-Dispute and Sabka Vishwas FAQs