The Central Board of Indirect Taxes & Customs (“CBIC”) has recently issued Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (“SVLDRS”) FAQs updated till December 24th, 2019.
A selected few of the important queries resolved are as follows –
Query: I was issued a show cause notice after 01.07.2019. Can I file a declaration under the Scheme?
Answer: Such cases are not covered under any of the category such as an enquiry or investigation or audit and tax dues having not been quantified on or before 30.06.2019. However, once adjudicated such cases become eligible under ‘arrears’ category depending the fulfilment of other conditions such appeal period being over or appeal having attained finality or the person giving an undertaking that he will not file any further appeal in the matter. The will also be subject to the completion due process of review of the order in original by the department.
Query: I have filed a return and not paid duty in a return before 30.06.2019. However, subsequently, I have received an SCN for declaring lesser duty. If I file a declaration under the Scheme for such returns, will the SCN get covered automatically?
Answer: A case where a return has been filed and duty not paid is a case of arrears of revenue, whereas an SCN is a case under litigation. Section 129 provides that a discharge certificate issued with respect to the amount payable under this scheme shall be conclusive as to matter and time period stated therein and 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. In some cases, during subsequent investigation, it is discovered that the taxpayer has declared and paid lesser duty in the returns filed. Therefore, on conclusion of investigation etc., a show cause notice is issued demanding the differential duty. It may be noted that ‘matter’ under Section 129 means a case for which the taxpayer intends to file a declaration under the Scheme. In the instant case, a ‘return filed but duty not paid’ is a separate matter and the SCN issued for ‘differential amount’ is a separate matter.
Read more at: http://www.cbic.gov.in/resources//htdocs-servicetax/FAQ-24.12.2019.pdf