Q 1. Who is eligible to file declaration under
the SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019?
Ans. Any person falling under the following categories is
eligible, subject to other conditions under the Scheme, to file a declaration:
(a) Who has a show cause notice for duty or
one or more appeals arising out of such notice pending and where the final
hearing has not taken place as on 30.06.2019.
(b) Who has been issued show cause notice for
penalty and late fee only and where the final hearing has not
taken place as on 30.06.2019.
(c) Who has recoverable arrears pending?
(d) Who has cases under investigation and audit
where the duty involved has been quantified and communicated to party or
admitted by him in a statement on or before 30th June, 2019.
(e) Who want to make a voluntary disclosure.
Q 2. What are the acts covered under the Scheme?
Ans. This Scheme is applicable to the following
enactments, namely:-
(a) 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;
(b) The following Acts, namely:-
(i) The Agricultural Produce Cess Act,1940;
(ii) The Coffee Act, 1942;
(iii) The Mica Mines Labour Welfare Fund Act, 1946;
(iv) The Rubber Act, 1947;
(v) The Salt Cess Act, 1953;
(vi) The Medicinal and Toilet Preparations (Excise
Duties) Act, 1955;
(vii) The Additional Duties of Excise (Goods of Special
Importance) Act, 1957;
(viii) The Mineral Products (Additional Duties of Excise
and Customs) Act, 1958;
(ix) The Sugar (Special Excise Duty) Act, 1959;
(x) The Textiles Committee Act, 1963;
(xi) The Produce Cess Act, 1966;
(xii) The Limestone and Dolomite Mines Labour Welfare
Fund Act, 1972;
(xiii) The Coal Mines (Conservation and Development) Act,
1974;
(xiv) The Oil Industry (Development) Act, 1974;
(xv) The Tobacco Cess Act, 1975;
(xvi) The Iron Ore Mines, Manganese Ore Mines and Chrome
Ore Mines Labour Welfare Cess Act, 1976;
(xvii) The Bidi Workers Welfare Cess Act, 1976;
(xviii) The Additional Duties of Excise (Textiles and
Textile Articles) Act, 1978;
(xix) The Sugar Cess Act, 1982;
(xx) The Jute Manufacturers Cess Act, 1983;
(xxi) The Agricultural and Processed Food Products Export
Cess Act, 1985;
(xxii) The Spices Cess Act, 1986;
(xxiii) The Finance Act, 2004;
(xxiv) The Finance Act, 2007;
(xxv) The Finance Act, 2015;
(xxvi) The Finance Act, 2016;
(c) Any other Act, as the Central Government may, by
notification in the Official Gazette, specify.
Q.3 If an enquiry or investigation or audit has started
but the tax dues have not been quantified whether the person is
eligible to opt for the scheme?
Ans. No. If
an audit, enquiry or investigation has started, and the amount of duty payable
has not been quantified on or before 30th June, 2019, the person shall
not be eligible to opt for the scheme.
Q.4 If a SCN covers multiple issues, whether the person
can file an application under the scheme for only few issues covered in the
SCN?
Ans. A No. person has to file declaration for
entire amount of tax dues as per the SCN.
Q.5 What is the scope of tax relief covered under section
124(1) (b) with respect to SCN for late fee and penalty only where the amount
of duty in the said notice has been paid or is nil?
Ans. The tax relief shall be the entire amount of late
fee or penalty.
Q.6 I have filed an appeal before the appellate forum
(Commissioner (Appeals) /CESTAT) and such appeal has been heard finally on or
before the 30thday of June, 2019. Am I eligible for the scheme?
Ans. No, you are not eligible in view of section 125(1) (a)
of the said Scheme.
Q.7 What is the scope under the scheme when adjudication
order determining the duty/tax liability is passed and received prior to
30.06.2019, but the appeal is filed on or after 01.07.2019?
Ans. No, such a person shall not be eligible to file a
declaration under the Scheme.
Q.8 I have been convicted for an offence punishable under
a provision of the indirect tax enactment. Am I eligible for the Scheme?
Ans. A person who has been convicted for any offence
punishable under any provision of the indirect tax enactment for the matter for
which he intends to file a Declaration shall not be eligible to
avail the benefits under the Scheme.
Q.9 I have been issued a SCN, under indirect tax
enactment and the final hearing has taken place on or before the 30th day
of June, 2019. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (c)
of the Scheme.
Q.10 I have been issued a SCN under indirect tax
enactment for an erroneous refund or refund. Am I eligible for the scheme?
Ans. No, you are not eligible as per section 125(1)(d)
of the Scheme.
Q.11 I have been subjected to an enquiry or investigation
or audit under indirect tax enactment and the amount of duty involved in the
said enquiry or investigation or audit has not been quantified on or before the
30th day of June, 2019. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (e)
of the Scheme.
Q.12 I have been subjected to an enquiry or investigation
or audit under indirect tax enactment and I want to make a voluntary disclosure
regarding the same. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (f)
(i) of the Scheme.
Q.13 I want to make a voluntary disclosure after having
filed a return under the indirect tax enactment, wherein I have indicated an
amount of duty as payable but the same has not been paid. Am I eligible for the
Scheme?
Ans. You cannot make a voluntary disclosure in such a
case. However, you can still file a Declaration under Section 125(1) (f)(ii).
Q.14 I have filed an application in the Settlement
Commission for settlement of the case. Am I eligible for the Scheme?
Ans. No, you are not eligible to file a Declaration for a
case for which you have filed an application in the Settlement Commission.
Q.15 I deal with the goods which are presently under
Central Excise and is mentioned in the Fourth Schedule to the Central Excise
Act, 1944. I want to make declarations with respect to those excisable goods.
Am I eligible for the scheme?
Ans. No, you are not eligible to avail the benefits under
the Scheme.
Q 16. How will I apply for the said scheme?
Ans. All such persons who are eligible under the Scheme
will be required to file an electronic declaration at the
portal https://cbic-gst.gov.in
Q 17 Will I get an acknowledgement for filing a
declaration electronically?
Ans. Yes, on receipt of declaration, an auto
acknowledgement bearing a unique reference number will be generated by the
system. This unique number will be useful for all future references. The
declaration will automatically be routed to the designated committee that will
finalize your case.
Q.18 How will I come to know about the final decision
taken by the designated committee on my declaration?
Ans. Within sixty days of filing of a declaration, you
will be informed electronically about the final decision taken in the matter.
Q.19 What is the difference between ‘Tax Dues’ and ‘Tax
Relief’?
Ans. ‘Tax Dues’ is the total outstanding duty demand.
‘Tax Relief’ is the concession the Scheme offers from the total outstanding
duty demand.
Q.20 A SCN has been issued to me for an amount of duty
of Rs. 1000 and an amount of penalty of Rs.100 In the Order in
Original (OIO) the duty confirmed is of Rs. 1000 and an amount
of Rs. 100 has been imposed as penalty. I have filed an appeal
against this order before the Appellate Authority. What will be the tax dues
for me?
Ans. The amount of duty which is being disputed is Rs. 1000 and hence the tax
dues will be Rs. 1000.
Q.21 A SCN has been issued to me for an amount of duty
of Rs.1000 and an amount of penalty of Rs.90 In the
OIO the duty confirmed is of Rs. 900 and penalty
imposed is Rs. 90. I have filed an appeal against this order. The
department has not filed any appeal in the matter. What would be the tax dues?
Ans. The amount of duty which is being disputed is Rs.
900 and hence the tax dues are Rs. 900.
Q.22 A SCN has been issued for an amount of duty of Rs. 1000 and an amount
of penalty of Rs. In the OIO the duty confirmed is of Rs. 900 and penalty
imposed is Rs. 90. I have filed an appeal against this order
before the Appellate Authority. Further, Department has also filed an appeal
before the Appellate Authority for an amount of duty of Rs. 100 and penalty
of Rs. 10. What would be the tax dues?
Ans. The amount of duty which is being disputed is Rs. 900 plus Rs. 100 i.e. Rs. 1000 and hence tax dues
are Rs. 1000.
Q.23 A SCN has been issued for an amount of duty of Rs. The Adjudicating
Authority confirmed the duty of Rs. 1000. I have filed
an appeal against this order. The first appellate authority Commissioner
Appeals/CESTAT reduced the amount of duty to Rs. 900. I have filed a
second appeal (before CESTAT/High Court. The department has not filed any
appeal. What will be the tax dues for me?
Ans. The amount of duty which is being disputed is Rs. 900 and hence the tax
dues are Rs. 900.
Q.24 I have been issued a SCN under any of the indirect
tax enactment on or before the 30th June, 2019, what will be the tax dues?
As per section 123(b), the tax dues will be the amount of
duty/tax/cess stated to be payable in the SCN.
Q.25 I have been issued a SCN, wherein other persons
apart from me are jointly and severally liable for an amount, then, what would
be the tax dues?
Ans. As per section 123(b), the amount indicated in the
SCN as jointly and severally payable shall be taken to be the tax dues payable
by you.
Q.26 What is the coverage of SCNs under the Scheme with
respect to main noticee vis-à-vis co-noticee particularly when the tax amount
is paid?
Ans. In case of a SCN issued to an assesse demanding duty
and also proposing penal action against him as well as separate penal action
against the co-noticee/s specified therein, if the main noticee has settled the
tax dues, the co-noticee/s can opt for the scheme for the waiver of penalty.
Q.27 What is the scope of coverage of periodical SCNs under
the scheme?
Ans. Any SCN whether main or periodical, issued and where
the final hearing has not taken place on or before 30.06.2019 is eligible under
the Scheme.
Q.28 What are the benefits available under the Scheme?
Ans. The various benefits available under the Scheme are:
Total waiver of interest, penalty and fine in all cases
Immunity from prosecution
In cases pending in adjudication or appeal, a relief of
70% from the duty demand if it is Rs. 50 Lakh or less and 50%, if it is more than Rs. 50 Lakh.The same relief
is available 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 is 60% of the
confirmed duty amount if the same is Rs. 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.
Q.29 Shall the pre deposit paid at any stage of appellate
proceedings and deposit paid during enquiry, investigation or audit be taken
into account for calculating relief under the scheme?
Ans. Any amount paid as pre-deposit at any stage of
appellate proceedings under the indirect tax enactment or as deposit during
enquiry, investigation or audit, shall be deducted while issuing the statement
indicating the amount payable by the declarant.
Q.30 How the declaration made by the declarant under the
Scheme would be verified?
Ans. The declaration made under section 125 except when
it relates to a case of voluntary disclosure of an amount of duty shall be
verified by the Designated Committee based on the particulars furnished by the
declarant as well as the records available with the department.
Q.31 Whether the declarant will be given an opportunity
of being heard or not?
Ans. Yes, as per section 127(3), after the issue of the
estimate under sub-section (2), the Designated Committee shall give an
opportunity of being heard to the declarant, if he so desires, in case of a
disagreement.
Q.32 What will be procedure and time period of payment to
be made by the declarant?
Ans. The declarant shall pay electronically withina
period of 30 days of the statement issued by the Designated Committee, the
amount payable as indicated therein.
Q.33 What procedure will be followed for withdrawal of appeals
where the person has filed a declaration under the Scheme?
Ans. Where the declarant has filed an appeal or reference
or a reply to the SCN against any order or notice giving rise to the tax dues,
before the appellate forum, other than the Supreme Court or the High Court,
then, such appeal or reference or reply shall be deemed to have been withdrawn.
In case of a writ petition or appeal or reference before any High Court or the
Supreme Court, the declarant shall file an application before such High Court
or the Supreme Court for withdrawing such writ petition, appeal or reference
and after withdrawal of such writ petition, appeal or reference with the leave
of the Court, he shall furnish proof of such withdrawal to the Designated
Committee.
Q.34 Whether any certificate will be provided to
declarant as proof to payment of dues?
Ans. Yes, on payment of the amount indicated in the
statement and production of proof of withdrawal of appeal, wherever applicable,
the Designated Committee shall issue a discharge certificate in electronic
form, within 30 days of the said payment and production of proof, whichever is
later.
Q.35 Whether a calculation error in statement may be
rectified or not?
Ans. Yes, within 30 days of the date of issue of a
statement indicating the amount payable by the declarant, the Designated
Committee may modify its order only to correct an arithmetical error or
clerical error, which is apparent on the face of record, on such error being
pointed out by the declarant or suo-motu.
Q.36 What will be the benefits of discharge certificate
issued under the scheme?
Ans. Every discharge certificate issued under section 127
with respect to the amount payable under this Scheme shall be conclusive as to
the matter and time period stated therein, and (a) 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; (b) the declarant shall not be
liable to be prosecuted under the indirect tax enactment with respect to the
matter and time period covered in the declaration; and (c) no matter and time
period covered by such declaration shall be reopened in any other proceeding
under the indirect tax enactment.
Q.37 Can I take input tax credit for any amount
paid under the Scheme.
Ans. No.
Q.38 Can I pay any amount under the Scheme through the
input tax credit account under the indirect tax enactment or any other Act?
Ans. No.
Q.39 Can I take a refund of an amount deposited under the
Scheme?
Ans. No.
Q.40 In cases where pre-deposit or other deposit already
paid exceeds the amount payable as indicated in the statement of the designated
committee, the difference shall be refunded or not?
Ans. No, it shall not be refunded.
Q.41 Is there any benefit, concession or immunity on the
declarant in any proceedings other than those in relation to the matter and
time period to which the declaration has been made?
Ans. No, as per section 131, nothing contained in this
Scheme shall be construed as conferring any benefit, concession or immunity on
the declarant in any proceedings other than those in relation to the matter and
time period to which the declaration has been made.
Q.42 Whether the discharge certificate under the scheme
would serve as immunity against issuance of any further SCN (i) for the same
matter for a subsequent time period; or (ii) for a different matter for the
same time period?
Ans. No, as per section 129 (2)(b), the issue of the
discharge certificate with respect to a matter for a time period shall not
preclude the issue of a SCN,(i) for the same matter for a subsequent time
period; or (ii) for a different matter for the same time period.
Q.43 What action would be taken against a declarant who
makes false voluntary disclosure under the scheme?
Ans. As per section 129(c),
in such cases of voluntary disclosure, where any material particular furnished
in the declaration is subsequently found to be false, within a period of one
year of issue of the discharge certificate, it shall be presumed as if the
declaration was never made and proceedings under the applicable indirect tax
enactment shall be instituted.