GET RID OF PENALTY, FINE, INTEREST, AND PROSECUTION UNDER CENTRAL EXCISE AND SERVICE TAX


In the Union Budget 2019-20, The Hon’ble Finance Minister announced the SABKA VISHWAS – LEGACY DISPUTE RESOLUTION SCHEME 2019, The Scheme has now been notified and will be operationalized from 1st September 2019. The scheme would continue till 31st December 2019.

PURPOSE 
The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Services Tax that are subsumed in GST and are pending in litigation at various forums. The object of this scheme is to free as large segment of taxpayers from the legacy taxes as possible.

COMPONENTS 
There are two main components of the scheme are dispute resolution and amnesty. The amnesty component of the scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. it provides substantial relief in tax dues for all categories of cases as well as full waiver of interest, fine, penalty, there is also complete amnesty from prosecution.

i)  For all cases pending in adjudication or appeal – (in any forum) – 
    if duty demand is 50 Lakhs or less              -    relief 70 % of duty demand 
    if duty demand is more than 50 lakhs          -    relief 50 % of duty demand 
    The same relief is available for cases under investigation and audit where the duty    involved is quantified and communicated to the party or admitted by him in a statement on or before 30th June 2019. 

ii) In cases of confirmed duty demand, where there is no appeal pending – 
                   If confirmed duty amount is 50 Lakhs or less             - relief 60 % of confirmed duty 
                   If confirmed duty amount if more than 50 Lakhs       - relief 40% of confirmed duty  
      Finally, in case of voluntary disclosure , the person availing the scheme will have to pay only the full amount of disclosed duty ( No penalty , interest )

Author 
CA Pooja Shukla FCA
RYPS & ASSOCIATES LLP
Website:www.ryps.in
Contact No: 9810505547

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