Legacy dispute resolution scheme

[Adarsh Gupta]

Let us suppose that a matter went upto CESTAT and thereafter was remanded back to the adjudicating authority. Assuming all other conditions for qualifying under LDRS were met will the matter be filed under litigation category or arrears category

[KASTURI SETHI]

What is the date of remand order by CESTAT ? What is the date of SCN in this case ?

[Adarsh Gupta]

Sir, date of remand back order is 22.03.2012 and date of SCN is 5/5/2009

[KASTURI SETHI]

It is unbelievable that the de novo proceedings in this case have been pending adjudication for 8-9 years !! Anyhow, as per the dates mentioned by you this case is covered under 'litigation category'. When CESTAT remands the case back to the original Adjudicating Authority (NOT to the Commissioner (Appeals), SCN is restored. To make it clearer, the demand was/is unconfirmed as on 30.6.19. Hence unconfirmed demand cannot be recovered and it cannot be called arrears. So you can file your declaration under litigation category under SVLDRS, 2019.

AI Summary

Remand restores show cause notice; unconfirmed tax demand remains in litigation category under legacy dispute resolution scheme.
Remand to the original Adjudicating Authority restores the original show cause notice so that where de novo proceedings leave the demand unconfirmed at the scheme cut off, the liability remains contested litigation and must be filed under the litigation category of the legacy dispute resolution scheme rather than as arrears.