Filing of Discharge Certificate under SVLDR Scheme: CESTAT withdraws appeal u/s 127 (6) of Finance Act [Read Order]

A Two Member Bench of the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), withdraws appeal filed under Section 127 (6) of the Finance Act as a Discharge Certificate was filed under Sabka Vishwas (Legacy Dispute Resolution) (SVLDR) Scheme.

A Discharge Certificate in Form No. SVLDRS-4 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (‘SVLDR Scheme’), 2019 has been issued to the assessee, Mrs. U. Vijayalakshmi.

Sabka Vishwas Legacy Dispute Resolution Scheme is an ambitious scheme made available for the pre-GST taxpayers to resolve the tax disputes.The Sabka Vishwas Scheme, 2019 is a scheme proposed in the Union Budget, 2019, and introduced to resolve all disputes relating to the erstwhile Service Tax and Central Excise Acts, which are now subsumed under GST, as well as 26 other Indirect Tax enactments (as listed below). The scheme will be for taxpayers who wish to close their pending disputes, with a substantial relief provided by the government.

The scheme has been notified by the CBIC to come into force on the 1st of September, 2019, and shall be operational until the 31st of December, 2019.This scheme offers several lucrative resolution benefits to taxpayers, such as-

• Taxpayers can pay the outstanding tax amounts due and be free from any other consequences under the Law. 
• Taxpayers will get substantial relief in the form of full waivers of interest, penalties and fines. 
• There will be complete amnesty from prosecution proceedings.

Provisions in Chapter V of the Finance (No.2) Act, 2019, whereby “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019” has been enacted; is an offer by the Government to settle tax arrears locked in litigation at a substantial discount. Section 124 Finance Act 2019 provides the slabs of tax arrears and the discount slabs in percentage for payment by an applicant/declarant to settle the dispute.

The Coram consisting of P Dinesha, Judicial Member and M Ajit Kumar, Technical Member observed that “The present appeal is therefore to be deemed as withdrawn in terms of Section 127 (6) of the Finance Act, 2019 for availing the benefit of the SVLDR Scheme.”

To Read the full text of the Order CLICK HERE

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