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under category of 'arrears' in respect of first case, appeal filed with CESTAT shall be deemed to have been as withdrawn.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

Assessee Can Use SVLDRS for 2012-14 Tax Dispute While Contesting 2014-16 SCN, Expert Confirms Case-by-Case Basis An assessee involved in a service tax evasion investigation for 2012-14 wants to use the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) by withdrawing an appeal filed with the CESTAT. However, a separate Show Cause Notice (SCN) for 2014-16 remains unadjudicated. The assessee seeks clarification on whether they can file a declaration under SVLDRS for the adjudicated SCN while contesting the later SCN. An expert confirms this is permissible, as declarations can be made on a case-by-case basis, allowing the first SCN to be resolved under the 'arrears' category without affecting the second SCN.