The CBIC has issued another set of Frequently Asked Questions (FAQs) on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 earlier introduced vide Finance (No. 2) Act, 2019 to resolve the pending litigations relating to excise and service tax matters. The important questions which are covered under the FAQ are as discussed hereunder:-
Q1. Who is eligible to file a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019?
Ans. Any person falling under the following category is eligible, subject to other conditions, to file a declaration under the Scheme:
(a) Who has a show-cause notice (SCN) for the demand of duty/tax or one or more pending appeals arising out of such notice where the final hearing has not taken place as on June 30, 2019
(b) Who has been issued SCN for penalty and late fee only and where the final hearing has not taken place as on June 30, 2019
(c) Who has recoverable arrears pending.
(d) Who has cases under investigation and audit where the duty/tax involved has been quantified and communicated to him or admitted by him in a statement on or before June 30, 2019
(e) Who wants to make a voluntary disclosure.
Q2. 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/duty payable has not been quantified on or before June 30, 2019, the person shall not be eligible to opt for the Scheme under the enquiry or investigation or audit category. ‘Quantified’ means a written communication of the amount of duty payable under the indirect tax enactment[Section 121(g)]. Such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc.[Para 10(g) of Circular No 1071/4/2019-CX dated August 27, 2019]
Q3. There is an apparent contradiction between the provisions of section 125(1)(f)(ii) and section 124(1)(c)(iii). Can you elaborate?
Ans. Section 125(1)(f)(ii) is an exception to the voluntary disclosure category. In other words, a person has filed a return but has not deposited the duty/tax cannot make a voluntary disclosure in respect of the same since the liability already stands disclosed to the Department. On the other hand, section 124(1)(c)(iii) is a sub-set of the ‘arrears’ category, meaning thereby that in respect of such return a declaration can only be filed under the arrears category. As such, there is no contradiction between the two provisions.
Notes:
1. For Scheme details please refer to the Finance (No.2) Act, 2019.
2. The ‘sections’ referred below are those of the Finance (No.2) Act, 2019.
3. In case of any apparent inconsistency between the contents of these FAQs and the statutory provisions, the latter shall prevail.
The Complete FAQ can be accessed at: http://www.cbic.gov.in/resources//htdocs-servicetax/FAQs30.10.2019svldrs.pdf;jsessionid=A2196F724A8112BE1FEFF700420A5246