CBIC circular clarifying various open issues under the Sabka Vishwas (Legacy Dispute Resolution Scheme), 2019

CBIC circular clarifying various open issues under the Sabka Vishwas (Legacy Dispute Resolution Scheme), 2019

The brief highlights of the CBIC circular no. 1071/4/2019-CX.8 dated 27.08.2019 clarifying various open issues under the Sabka Vishwas (Legacy Dispute Resolution Scheme), 2019 effective from 01.09.2019 are as under:

Key clarifications

1. Opting for the scheme will not be assumed as admission of the position by the Declarant.

2. Similarly issuance of discharge certificate cannot be treated as acceptance of disputed position by the department.

3. Any amount paid as pre-deposit during appellate proceedings or as deposit during enquiry, investigation or audit, either by cash or utilising input tax credit shall be adjusted while determining final amount payable under the scheme.

4. In matters where hearing is typically rescheduled even after the final hearing due to new bench or change in officer or any other reason, the restriction will apply only to those cases where the appellate forum has heard the matter finally as on 30.06.2019.

5. Cases outside the purview of the settlement commission can be covered in the scheme. This also includes any pending appeals, reference or writ petition filed against or any arrears emerging out of the orders of settlement commission.

6. Amount of duty also includes demand for CENVAT credit.

7. The scheme covers all kinds of pending disputes including call book cases with following exceptions:

• Cases in respect of goods still subject to levy of Central excise (petroleum products and tobacco)
• Cases for which the taxpayer/notice has already been convicted in a court of law
• Cases under adjudication or litigation where final hearing has taken place before 30.06.2019
• Cases of erroneous refunds
• Cases pending before settlement commission

8. Discharge certificate shall be conclusive as to the matter and time period stated therein and no matter and time period covered therein can be reopened in any other proceedings under said indirect tax enactments. The only exception is that in case of voluntary disclosure of liability, declaration can be reopened within one year of issue of discharge certificate, if subsequently any material particular is found to be false.

Key functionalities:

1. Dedicated portal www.cbic-gst.gov.in for online filing of declaration and communication of final decision

2. User manual for online facility to be issued soon

3. Fixed timelines to be strictly adhered to complete entire process from filing of declaration to communication of departments decision to payment within 90 days

4. No scope for extension of time period for the complete process / sub-process.

5. Automated calculation of relief

6. No verification by the department in case of voluntary disclosure; however, opportunity of being heard to be provided in case the same is sought by the declarant

7. Instructions to finalise the cases within 15 days of receipt of application where particular are found to be correct as per declaration filed and the department records

Further, an extensive out-reach programme to create awareness among the trade and industry is also proposed wherein the department is instructed to itself assess the eligible tax payers and issue polite email or phone call or letter or periodic SMS to such eligible tax payers informing them about the scheme.

Click here to Read the Circular

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