Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019

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Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019


  • Overview
  1. Focus on settling of legacy disputes related to central taxes viz. Central Excise, Service Tax and others, pending at various levels 
  2. Expected to be notified soon, with a specific window period to exercise the option • Proceedings under the scheme specifically stated to not be treated as a precedent for past and future liabilities.
  3. Relief in form of payment of part tax dues , waiver of interest and penalty and immunity from prosecution in relation to the matter and period covered
  • Rules for carrying out the following provisions of the scheme are awaited: ─ 
  1. Form for filing of declaration and manner for its verification
  2. Manner and constitution of designated committee and rules for its procedure and functioning
  3. Form and manner of estimation of amount payable by the declarant, making payment and intimation for withdrawal of appeal and discharge certificate to be granted to declarant.
  • Eligibility
  1. Who has a show cause notice (SCN) for 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 30.06.2019.
  2. Who has been issued SCN for penalty and late fee only and where the final hearing has not taken place as on 30.06.2019.
  3. Who has recoverable arrears pending.
  4. 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 30th June, 2019.
  5. Who wants to make a voluntary disclosure.
  • Benefits for declarant 
  1. Reduced tax/ duty liability
  2. Discharge certificate issued with respect to the amount of tax dues to be conclusive for the matter and period mentioned in the declaration
  3. Interest & penalty waiver and immunity from prosecution
  4. The matter and period covered in the statement not to be reopened in any other proceeding
  5. In cases pending in adjudication or appeal, a relief of 70% from the duty/tax demand if it is Rs. 50 lakhs or less and of 50%, if it is more than Rs. 50 lakhs.The same relief is available for cases under enquiry, investigation and audit where the duty involved is quantified on or before 30.06.2019.
  6. In case of an amount in arrears, the relief is 60% of the confirmed duty/tax amount if the same is Rs. 50 lakhs or less and it is 40% in other cases.
  7. In cases of voluntary disclosure, the declarant will have to pay full amount of disclosed duty/tax. 
  • Conditions for availing benefits
  1. Amount to be paid under the scheme shall not be paid through input tax credit account.
  2. Amount paid cannot be taken as input tax credit or entitle any person to take input tax credit as a recipient 
  3. Amount paid under the scheme shall not be refundable
  4. If pre-deposit exceeds payment, refund would not be available

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