TaxTMI 
TaxTMI 
Performance Audit Report No. 14 of 2022 “Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) 2019” of C&AG of India (Indirect Taxes- GST, Central Excise & Service Tax)
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.....in Madam/ Sir, Subject: Performance Audit Report No. 14 of 2022 "Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) 2019" of C&AG of India (Indirect Taxes- GST, Central Excise & Service Tax)-reg. The Performance Audit Report No. 14 of 2022 "Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) 2019" of C&AG of India (Indirect Taxes-GST, Central Excise & Service Tax) which was tabled in Parliament on 21.12.2022, has made certain observations about implementation of the Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) (the 'Scheme'), settlement of cases, realization of tax dues and internal control mechanisms. 2. Briefly, the Audit has, inter-alia, pointed out that some Designated Committees irregularly processed declar....
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....notified by the Finance Act (No.2), 2019, was an Amnesty-cum- Dispute Settlement Scheme, which provided one time opportunity to the tax payer to settle the tax dispute and avail tax relief. Four categories of cases - Litigation, Arrears, Investigation/Enquiry/Audit and Voluntary Disclosure were identified/covered in the scheme. The process was fully automated for electronic filling of declarations, communication of amount payable, personal hearing, payment of tax dues and issue of discharge certificate through SVLDRS portal. Designated Committees were appointed in commissionerates who were the appropriate authority for verification of declarations and issue of discharge certificates, based on the particulars furnished by the declarant as we....
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....ion under 'voluntary disclosure' category but did not make the payment under the scheme. A list of all such cases has already been circulated to the field formations by the O/o Pr. DG Systems & Data Management. In all other cases also, such as the declarations filed under litigation, investigation, enquiry or audit, or arrears category, where Discharge Certificates could not be issued, especially due to non-payment of the estimated payable amount, or were rejected by the Designated Committees, necessary action to safeguard interests of revenue needs to be taken by the jurisdictional officer. 5.2 Audit has brought to the notice of Ministry that in some cases, tax evaders who had opted for Voluntary Compliance Encouragement Scheme, 2013 (VCE....
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....l from its website. Similarly, the list of cases pending with Commissioner (Appeals) must also be updated. Accordingly, it is directed to identify all such cases, where discharge certificates have been issued but are still showing pending with CESTAT or Commissioner (Appeals), in coordination with the respective legal/appellate forum and update the status of the said cases as withdrawn with respective legal/appellate forums. Further, it may be ensured that Misc. application is filed for withdrawal of departmental appeals in cases where discharge certificates have been issued but are still showing pending with CESTAT or Commissioner (Appeals), and their status is updated. 5.3.2 In respect of cases with Supreme Court or High Court, kind atte....
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....pect of the cases settled under the scheme but still shown as pending at legal forums, the jurisdictional Pr. Chief Commissioner/ Chief Commissioner of the zone may devise a mechanism to monitor such cases and ensure compliance to the Audit observations/ recommendations. 5.4 Audit has recommended that the Department must verify that the non-SVLDRS challans already used for SVLDRS settlement have not been used in the past, and should create a watch list of such challans to prevent them from being reused in future also. 5.4.1 CBIC vide letter dated 23.12.2019 has already directed the O/o Pr. DG Systems & Data Management to ensure that a proper audit trail with adequate safeguards is provided so that facility to link payment made by a taxpay....