SABKA VISHWAS (LEGACY

DISPUTE RESOLUTION)
SCHEME, 2019
THE FINANCE (No.2) BILL, 2019

GST & Central Excise, Chennai

Outer
 OBJECTIVES OF THE SCHEME

The Scheme is a one time

measure for liquidation of past
1 disputes of Central Excise,
Service Tax and 26 other indirect
The Scheme provides that eligible
tax enactments.
persons shall declare the unpaid tax
2 dues and pay the same in
accordance with the provisions of
the Scheme.
The Scheme provides for certain

3 immunities including penalty, interest or

any other proceedings including
prosecution to those persons who pay
the declared tax dues.

GST & Central Excise, Chennai Outer

 INTRODUCTION

• This Scheme shall be called the Sabka Vishwas (Legacy

Dispute Resolution) Scheme, 2019.
 
• It shall come into force on such date when notified in the
Official Gazette.

• Declaration related to excisable goods set forth in the Fourth

Schedule (Chapter 24 and 27) to the Central Excise Act,
1944 are not included under the Scheme.

• The Scheme is applicable to the Central Excise Act, 1944 or

the Central Excise Tariff Act, 1985 or Chapter V of the Finance
Act, 1994 and 26
GST other Acts
& Central and
Excise, the Rules
Chennai Outer made thereunder.
 TYPES OF DISPUTES COVERED BY SCHEME

• “Amount in arrears” means the amount of duty which is recoverable as

arrears of duty.

Any type of
dispute in
No appeal Admitted
any
filed before
expiry of the
appellate liability in
forum which a return
time period
is attaining
finality

• “Appellate forum” does not include JS(RA) and Settlement

Commission.

GST & Central Excise, Chennai Outer

 TAX DUES
“Audit” means any scrutiny,
“Quantified” means a
verification and checks and
written communication
will commence when a
of the amount of duty An
An written intimation from the
payable under the amount
amount
SCN in Central Excise officer
indirect tax enactment. SCN in
issued Arrears
Arrears
regarding conducting of audit
Enquiry
Enquiry or
or issued
Investigatio
Investigatio (as
(as on
on 30
th
30th is received.
n
n or
or Audit
Audit June
June 2019)
2019)
(quantified
(quantified as
as
on
on 30
30th June
th

2019)
June Voluntary
Voluntary
2019)
Disclosur
Disclosur
e ‘‘Enquiry or investigation’’,
e
Arrears
Arrears under any of the indirect tax
arising
arising out
out of
of enactment, shall include the
Single Appeal
Single Appeal
(Dept.
(Dept. or
or
Arrears
Arrears following actions, namely:—
arising
arising out
out of
of
Party appeal)
Party appeal) more than
more than
(i) search of premises;
one
one appeal
appeal (ii) issuance of summons;
(Dept.
(Dept. and
and
Party appeal)
Party appeal)
(iii) Letters asking for
production
of accounts, documents
or
other evidence;
(iv) recording of
GST & Central Excise, Chennai Outer statements.
 EXAMPLES FOR TAX DUES
SCN FOR DUTY `1000 AND
SCN FOR DUTY
SCN FOR DUTY `1000 SCN FOR DUTY `1000 PENALTY `100 `1000 AND PENALTY
ORDER IS FOR `900 AND
AND PENALTY `100 AND PENALTY `100 PENALTY IS `90
`100 & CONFIRMED.
ASSESSEE FILES APPEAL
FIRST APPEAL
ORDER IS FOR `1000 ORDER IS FOR `900 AGAINST ORDER AND REDUCES DUTY TO
AND PENALTY IS `100 AND PENALTY IS `90 DEPT FILES APPEAL FOR `900. FILES SECOND
`100 PLUS PENALTY `10
APPEAL

TAX DUES
TAX DUES TAX DUES ARE `1000 TAX DUES
ARE `1000 ARE `900 (900 ARE `900
+ 100)

“Amount payable” means the final amount payable by the declarant as determined by the designated committee and as
indicated in the statement issued by it and shall be calculated as the amount of tax dues less the tax relief.

GST & Central Excise, Chennai Outer

 RELIEF AVAILABLE UNDER SCHEME
SCN or Enquiry or An Amount SCN for late Voluntary
one or investigati amount payable as fee or Disclosure
more on or in per return penalty only
appeals audit arrears and duty is
paid / nil
As on 30th June
2019
Quantified as on
30th June 2019

Relief only
`50 Entire fee or for interest
LAKHS OR 70 % 70 % 60 % 60 %
penalty & penalty.
LESSER No tax
relief.

MORE Relief only

THAN `50 Entire fee or for interest
LAKHS 50 % 50 % 40 % 40 % penalty & penalty.
No tax
relief.
GST & Central Excise, Chennai Outer
 Not eligible for any
tax relief, but relief
available for interest
and penalty

Voluntary Cannot make a

disclosure under No verification voluntary
disclosure after an
this scheme by designated
enquiry or
committee investigation or
audit or for an
amount declared
Within one year, if as payable in a
found to be false, return filed
appropriate consequent to such
proceedings shall be proceedings.
initiated

GST & Central Excise, Chennai Outer

 PRECONDITIONS: RESTRICTIONS OF THE
SCHEME :

• The relief calculated shall be subject to (a) Shall not be paid through the input
the condition that any amount paid tax
as pre-deposit shall be deducted
credit
(b) Shall account.
not be taken as input tax
when issuing the statement indicating
credit;
the amount payable by the declarant.
or entitle any person to take input tax
• Provided that if the amount of pre-
credit, as a recipient, of the excisable
deposit or deposit already paid >
the amount payable the declarant goods
shall not be entitled to any refund. or taxable services.
(c) Shall not be refundable under any
circumstances.

GST & Central Excise, Chennai Outer

 VERIFICATION OF DECLARATION
When amount declared =
A designated When amount declared
Estimated Amount, = a
A Declaration in A designated Estimated Amount, a
A Declaration in committee shall statement in electronic
Electronic form committee shall statement in electronic
form shall be issued
Electronic form verify correctness form within
shall be
verify correctness 60issued
days
within 60 days

After hearing the When Estimated Amount

After hearing an
declarant, thee- One Personal Hearing will When Estimated Amount
> Amount declared by
declarant, indicating
statement an e- OnebePersonal Hearing
given, before will
issuing >declarant,
Amount declared by of
an estimate
statement indicating be given, before issuing declarant,
amount payable shall statement of amount paymentan estimate
shall of
be issued
amount payable shall
be issued within 60 statement of amount
payable payment shall30
bedays
issued
within
be issueddays
within 60 payable within 30 days
days

Within 30 days of
Within 30ofdays of On payment and
issuance Discharge On payment
issuance of Discharge production of and
proof of The declarant shall
Certificate, the production of proof of the
Certificate, the withdrawal of appeal, The declarant shall
committee can modify its withdrawal of appeal,
committee the
shall issue
pay online within 30
committee
order onlycan tomodify
correctits
an pay online within 30
order only to correct an
committee
Dischargeshall issue
Certificate days
arithmetical error or Discharge days
arithmetical withinCertificate
30 days
clericalerror
erroror within 30 days
clerical error

GST & Central Excise, Chennai Outer

 Not eligible to make a declaration under the scheme

h Excisable goods from Fourth Appeal before appellate forum and

heard finally on or before 30th June
a
Schedule to the Central a 2019

g Excise
Application in the
Settlement Commission
Act, 1944
h b Convicted for any offence for the matter
b
for which he intends to file a declaration
Voluntary Disclosure
after being subjected to
f any enquiry
investigation or audit &
or g c
Issued a SCN and final hearing has
c
filed a return, indicating
duty as payable, but has
not paid it to enquiry f d taken place on or before 30th June 2019
Subjected
or investigation or audit e
Issued a SCN for erroneous
d
e
refund or refund
and duty involved has
not been quantified on
or before 30th June
2019

GST & Central Excise, Chennai Outer

 a) Not be liable to pay any further duty, interest, or
penalty with
AFTER
respect to the matter and the time period covered.
ISSUANCE b) Not be liable to be prosecuted under the Indirect
Tax enactment.
OF
c) Shall not be reopened in any other proceeding
DISCHARGE under the

CERTIFICAT Indirect Tax enactment.

E d) If false declaration is made in voluntary disclosure,
proceedings
under the applicable laws shall be started within a
time-limit of one
year.
GST & Central Excise, Chennai Outer
POWER TO MAKE RULES BY CENTRAL GOVERNMENT

01 Declaration form and the manner of verification

Constitution of designated committee and rules of procedure

02
& functioning

03 Procedure relating to form and manner of estimation

04 Form and manner of making payment and

withdrawal of appeal
05 Form and manner of the discharge certificate

06 Manner of instructions to be issued and published

07 Any other matter

GST & Central Excise, Chennai Outer

 No suit, prosecution or other legal proceeding, if done,
or intended to be done in good faith.
PROTECTION
No proceeding, other than a suit shall be commenced
without a prior notice of not less than one month in
TO
writing, or after the expiration of three months from the
accrual of such cause.

OFFICERS No proceeding on the ground of subsequent detection of error

in calculating amount of duty payable, unless there is
evidence of misconduct.

GST & Central Excise, Chennai Outer

THANK YOU

GST & Central Excise, Chennai Outer