SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019

[LALIT MUNOYAT]

An assessee was subjected to investigation for evasion of service tax payable for the period 2012-13 and 2013-14. It was adjudicated on 14th June 2019 and an appeal against it was filed on 12-09-19 with the CESTAT. The assessee wants to file declaration under SVLDRS by withdrawing the appeal.

However it was noticed that in respect of the same matter but for the 2 later years 2014-15 and 2015-16 another SCN had been issued in August 2018 as a Statement of Demand under section 73(1A). The same had not yet been adjudicated ( pending as on 30-06-19)

The assessee wishes to know if he can file declaration under SVLDRS in respect of the SCN which had been already adjudicated and against which he is in Appeal before the CESTAT by withdrawing the Appeal to be eligible under Arrears category.

He wishes to contest the second SCN before the Adjudicator and does not wish to file declaration under SVLDRS.

Whether the assessee is permitted to file declaration in respect of the 1st SCN (in appeal in CESTAT) only and leavie the 2nd SCN (not yet adjudicated)

Time remaining for the scheme is only 2 days i.e. upto 31-12-19 and therefore early response by experts' shall be highly appreciated.

[KASTURI SETHI]

Q. Whether the assessee is permitted to file declaration in respect of the 1st SCN (in appeal in CESTAT) only and leavie the 2nd SCN (not yet adjudicated) ?

A. Yes. It is case-wise (SCN wise). It is not issue-wise. See the definition of "case" under Rule 3(2)(a) of SVLDRS Rules, 2019

A "case" means a show cause notice.

Hence you are eligible for filing declaration in respect of 1st SCN and leave the 2nd SCN. If you file declaration under category of 'arrears' in respect of first case, appeal filed with CESTAT shall be deemed to have been as withdrawn. See Section 127 (6) of Finance (No.2) Act, 2019. No need to file misc. application for withdrawal of appeal with CESTAT.

[LALIT MUNOYAT]

Thanks Shri Kasturi Sethi for your reply.

AI Summary

SVLDRS case-wise eligibility permits declaring for one show-cause notice while leaving another pending; appeal deemed withdrawn on declaration. SVLDRS allows filing declarations SCN-wise because a 'case' is a show cause notice; an assessee may declare for an adjudicated SCN while leaving another unadjudicated SCN untouched. Declaring under the arrears category for the adjudicated SCN deems the existing appeal to be withdrawn, and no separate application to the appellate authority for withdrawal is necessary.