Monday, 2 September 2019

CBIC issues further clarifications on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019


This Tax Alert summarizes a recent circular [1] issued by Central Board of Indirect Taxes and Customs (CBIC) on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
Apart from reiterating the importance and benefits, the circular clarifies on few more issues arising out of the provisions of the scheme. Circular also provides instructions to the officers to make the scheme a success and ensure its smooth implementation.
The key clarifications are as follows:
•  If a person has been issued a show cause notice (SCN) for erroneous refund, they will still be eligible to file declaration for other disputed cases under the scheme.
•  The dispute relating to only penalty or late fee pending before appellate forum shall also be eligible under the scheme.
•  Ineligibility under the scheme for finally heard matters in appeal shall not apply in cases where the hearings are rescheduled after the final hearing due to new bench, change in officer or any other reason.
•  Cases where proceedings before the Settlement Commission are abated, shall be covered under the scheme, provided the eligibility is otherwise established. Further, any pending appeals, reference or writ petition filed against or any arrears emerging out of the orders of the Commission are also eligible under the scheme.
Clarification issued by the government on eligibility of cases of penalty/ late fee pending before the appellate authority is likely to benefit the taxpayers, considering the quantum of such litigation.
More such clarification may be expected from the CBIC basis practical and technical difficulties faced by the taxpayers in the process of filing the declarations.
 

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