Sabka Vishwas Scheme Voluntary Disclosure verification subsequently

[Parimal Kulkarni]

An application is filed under SVLDRS under voluntary disclosure category. However, now the department range officer wishes to initiate inquiry and called for verification of documents under section 129 (2) (c) of Finance Act, 2019 (2). In our view such verification cannot be called for under section 129(2)(c) or under any section of SVLDRS.

129(2)(c) : in a case of voluntary disclosure where any material particular furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted.

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AI Summary

Discharge certificate conclusiveness may be pierced for materially false voluntary disclosures, permitting targeted tax investigation.
The discharge certificate under the Sabka Vishwas scheme is generally conclusive, but if a material particular in a voluntary declaration is later found to be false within the statutory period the declaration is treated as never made and indirect tax proceedings may be initiated; investigations may target the same issue for later periods or a different issue for the same period, while routine verification of a correct declaration does not automatically permit reopening declared liabilities.