Query on Indirect Tax Dispute Resolution Scheme, 2016

[Sumeet Tholle]

Dear Sir,

Good Afternoon.

The Dispute Resolution Scheme,2016 applicable if dispute pending before Commissioner(Appeals) as on ist March 2016.

In my case, our client received OIO on 25th Jan. 2016 & we have not filed appeal till date.

Now my client wish to pay all tax, interest & 25% penalty wants to close the issue.

Is my client eligible for scheme if we file appeal now i.e. before end of 60 days ?

What is the status of my issue on 14th March 2016 ?

Can I say that my issue is pending with Commissioner (Appeals) on 01.03.2016 as it is not pending with Adjudicating Authority ?

Pl. reply.

Thanks.

Sumeet C. Tholle,

CA,

Aurangabad

[KASTURI SETHI]

Sh.Summet C. Tholie,

In my views, your client is not eligible as only those cases will be considered which are pending with the Office Of The Commissioner (Appeals) as on 1.3.2016 (as per records of office). However, still rules are to be framed and enacted. There is every possibility of some changes while framing rules.

[Ganeshan Kalyani]

Yes I agree with Sri Kasturi Sir's reply. Even otherwise if you decide to close the case by paying the disputed tax along with interest and penalty the case would be concluded. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

In this case, the party has crossed period of thirty days from the date of communication of order-in-original. They have neither deposited tax along with interest and 25% of penalty nor filed appeal with the Commissioner (Appeals) before 1.3.16 in order to avail the benefit of the Indirect Dispute Resolution Scheme, 2016. Though he can file appeal with the Commissioner (Appeals) with in 30 days of the receipt of order. So he has forfeited the benefit of reduced penalty in both ways.Had he filed appealed before 1.3.16, he would have got the benefit of reduced penalty in new scheme.

[Ganeshan Kalyani]

Yes Sir I agree with your views. Thanks.

[Suryanarayana Sathineni]

Our friends already given the views which does not require any intervention. However, it is too early to think about this in absence of the Rules which are yet be framed or notified.

Regards

Suryanarayana

AI Summary

Eligibility for Indirect Tax Dispute Resolution Scheme requires matters pending before Commissioner(Appeals) per records; late appeals risk losing reduced penalty. Eligibility for the Indirect Tax Dispute Resolution Scheme, 2016 depends on the case being recorded as pending with the Office of the Commissioner (Appeals) as on 1.3.2016; matters not so recorded are ineligible. Independently, a dispute can be closed by payment of disputed tax with interest and the prescribed penalty, and failure to file an appeal or deposit amounts before the relevant cutoff will forfeit the opportunity for reduced penalty under the proposed scheme.