Revenue Proceedings not Possible After Issuance of Discharge Certificate Under SVLDRS Scheme: CESTAT
The tribunal held that as Form SVLDRS has been issued to the respondent i.e. Discharge Certificate, therefore no demand is sustainable against the respondent. [Read Order]
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that revenue proceedings not possible after the issuance of discharge certificate under SVLDRS [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019] Scheme.
Revenue is in appeal against the impugned order. Before going to the merits of the case, the counsel of the respondent, Akansha Sales Promoters submitted that in this case, the show cause notice has been issued on 09.07.2010 and by way of adjudication, demand of Rs.1,57,43,624/- was confirmed and appellant has opted Sabka Vishwas (Legacy Dispute Resolution ) Scheme, 2019 and obtain SVLDRS – 4 i.e. discharge certificate. In that circumstances appeal filed by the Revenue is not maintainable.
Want a deeper insight into the Income Tax Bill, 2025? Click here
The two- member bench of Ashok Jindal (Judicial Member) and P. Anjani Kumar (Technical Member) was addressing the issue that in case where the assessee opts for SVLDRS Scheme and obtained discharge certificate can the proceedings by way of appeal by the Revenue is sustainable or not.
The bench noted that if the assessee chooses to participate in the scheme, the applicant must submit a declaration on Form SVLDRS-1 and upon receipt of the declaration, with the exception of voluntary disclosure of a duty amount not relevant to the case at hand, as in this instance, where the assessee was given a show-cause notice on July 9, 2010.
How to Audit Public Charitable Trusts under the Income Tax Act Click Here
The bench declared that since the respondent had already received a discharge certificate, no further action could be justified against them. In this instance, it is the responsibility of the designated committee to ascertain the precise amount of duty owed by the respondent and to issue a notification if the declaration made by the respondent is incorrect. Admittedly, the respondent in this instance did not get such notification, and the designated authority has acknowledged the respondent's declaration.
While allowing the appeal, the tribunal held that as Form SVLDRS has been issued to the respondent i.e. Discharge Certificate, therefore no demand is sustainable against the respondent.
