Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
1. Dispute Resolution cum Amnesty Scheme for legacy cases of Central Excise, Service Tax and Cess.
2. GST has just completed two years. An area that concerns me is that we have huge pending litigations from pre-GST regime. More than Rs. 3.75 lakh crore is blocked in litigations in service tax and excise. There is a need to unload this baggage and allow business to move on. I, therefore, propose, a Legacy Dispute Resolution Scheme that will allow quick closure of these litigations. I would urge the trade and business to avail this opportunity and be free from legacy litigations.
Nirmala Sitharaman ( Minister of Finance) Budget Speech
3. A dispute resolution cum amnesty scheme for resolution and settlement of legacy cases.
(i) covers past disputes of taxes which have got subsumed in GST namely Central Excise, Service Tax and Cesses.
4. The scheme to be available from a date to be notified.
5. Taxes/Cesses covered under the Scheme.
6. The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made there under and,
7. Sixteen other Acts covered.
(i) Relief from payment of tax dues to the extend of 50% to 70% of the tax dues depending on the amount of tax dues involved.
(ii) Relief from payment of interest and penalty.
(iii) Person discharged not be liable for prosecution.
|Details||Amount (In Rs)||Relief|
|Tax dues relatable to SCN or appeal arising out of such SCN which is Pending as on 30.06.2019 and||< 50 lakhs||70% of the Tax dues|
|—— Do—–||> 50 lakhs||50% of the Tax dues|
|Tax dues relatable to SCN for late fee or penalty only and the amount of duty has been paid or is nil||–||Entire amount of late fee or penalty|
|Tax Dues are relatable to amount in arrears||< 50 lakhs
> 50 lakhs
|60% of the Tax dues
40% of the Tax dues
|Tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before 30th June||< 50 lakhs
> 50 lakhs
|70% of tax dues
50% of tax dues
|Tax dues are on account of voluntary disclosure by the declarant||No relief|
9. All persons shall be eligible to make a declaration under this scheme except-
(i) Where appeal filed before the appellate forum AND final hearing has taken place on or before 30.06.2019.
(ii) Where SCN has been issued AND final hearing has taken place on or before 30.06.2019.
(iii) Who have been convicted for any offence under any provision for the matter for which he intends to file a declaration.
(iv) Who have been subjected to any enquiry or investigation or audit AND amount of duty involved has not been quantified on or before 30.06.2019.
10. All persons shall be eligible to make a declaration under this scheme except-
(i) Who have been issued a show cause notice for an erroneous refund or refund.
(ii) A person making a voluntary disclosure.
(a) after being subjected to any enquiry or investigation or audit.
(b) having filed a return wherein he has indicated an amount of duty as payable, but has not paid it.
(iii) who have filed an application in the Settlement Commission.
(iv) seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944.