Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019

Aug 23, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs on August 21, 2019, has published the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.

However, the two main components of the Scheme are dispute resolution and amnesty. The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums. The amnesty component of the Scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. The most attractive aspect of the Scheme is that it provides substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine, penalty and i`n all these cases, there would be no other liability of interest, fine or penalty. There is also a complete amnesty from prosecution.

This Scheme offers a relief of 70% from the duty demand if it is Rs.50 lakhs or less and 50% if it is more than Rs. 50 lakhs, for all the cases pending in adjudication or appeal in any forum. The same relief is available for cases under investigation and audit where the duty involved is quantified and communicated to the party or admitted by him in a statement on or before June 30, 2019. Further, in cases of confirmed duty demand, where there is no appeal pending, the relief offered is 60% of the confirmed duty amount if the same is Rs. 50 lakhs or less and it is 40%, if the confirmed duty amount is more than Rs. 50 lakhs. Finally, in cases of voluntary disclosure, the person availing the Scheme will have to pay only the full amount of disclosed duty.

These Rules will be operationalized from September 01, 2019 and it will continue till December 31, 2019.

[Notification No. 05/2019 Central Excise-NT]


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