Dispute Resolution Scheme

[Adarsh Gupta]

Dear Sir's,

SCN was issued against a company for non payment of service tax on a RCM transaction. The company deposited entire ST and claimed CENVAT credit in 2010. However demand was confirmed along with interest and penalty. The company preferred an appeal for tax, interest and penalty which is pending before CESTAT on 30.06.19.

Can the company take relief under LDRS scheme for interest and penalty?

Also, whether the company needs to reverse the CENVAT already claimed?

Regards.

AI Summary

LDRS relief for interest and penalty available; appeal withdrawal required and CENVAT reversal depends on SCN treatment.
Relief under the LDRS/SVLDRS requires filing the prescribed declaration and withdrawal of pending appeals; the scheme can extinguish interest and penalty and will compute tax liability (system may apply tax relief where applicable) and issue a discharge certificate. Regarding CENVAT credit, the statute bars taking input credit for amounts paid under the scheme, but where tax was paid and credit availed before the scheme there is no automatic reversal unless a show cause notice challenges admissibility or the payment is treated as a scheme payment; verify SCN position before reversing credit.