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Sabka Vishwas (Legacy Dispute Resolution) Scheme - An endeavour to get rid of legacy Indirect Tax disputes

Puneet Bansal 
on 03 September 2019

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"Every new beginning comes after an end of something...."

With this perspective in mind, the Union Government announced the 'Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019' ('Scheme') as a part of the Union Budget 2019-20. The Scheme will be in vogue during September 2019 to December 2019. Recently, the Government has also notified Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019. CBIC has further issued FAQ's as well as Circular, spelling out important clarifications relating to the Scheme.

Sabka Vishwas (Legacy Dispute Resolution) Scheme - An endeavour to get rid of legacy Indirect Tax disputes

The Scheme is a pragmatic step to remove the baggage relating to the legacy Indirect Taxes viz. Central Excise, Service Tax etc., that have been subsumed in GST. With this,the businesses can make a new beginning post introduction of GST. It aims to unlock Rs.3.75 Lakh crore stuck in such litigations.

The Scheme is a pro-taxpayer device which gives an opportunity to not only prevent upcoming litigation as well as bring an end to an identified demand. The most important aspect of the scheme is that it gives full waiver from interest, penalty and prosecution as well as major part of tax demand itself.

The Scheme covers the following Indirect Tax Enactments:

• Central Excise Act, 1944
• Central Excise Tariff Act, 1985
• Chapter V of the Finance Act, 1944
• Additional Duties of Excise (Goods of Special Importance) Act, 1957
• Finance Act, 2004, 2007, 2015 & 2016 (Education Cess, Senior and Higher Secondary Education Cess, SBC and KKC)
• Any other act notified by Central Government

Note: The scheme shall not be applicable for the disputes relating to the Customs Act, 1962 and the goods on which excise duty is presently applicable (covered under the Fourth Schedule of the Excise Act)

Evidently, it is a golden opportunity for the taxpayers to put a full stop to old disputes.

One needs to be equipped with complete knowledge about the scheme to make an informed decision as to whether to go under this scheme or not. In particular, there are some aspects of the Scheme which warrant careful consideration, like:

 

• All taxpayers are not eligible under the Scheme. Category of eligible and ineligible person has been specified.
• Amount of tax relief varies depending upon the case.
• Restrictions applicable.
• Procedure to be followed.
• Consequences of going for the Scheme.

For imparting an in-depth legal and practical understanding of the Scheme and to discuss the way forward, we are organizing an exclusive live interactive webinar with a renowned expert in Indirect Taxes - Mr. S.K. Rahman, Commissioner (IT & Compliance Verification) and Mr. Puneet Bansal (Managing Partner, NITYA Tax Associates). 

 

The webinar will be a 2-hour interactive session on September 21, 2019, covering extensive discussion on the scheme including a dedicated Q&A session at the end.

For registration and all other details, please click here


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