Proceedings Against Assessee Unsustainable Once Discharge Certificate Is Issued Under SVLDRS Scheme: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that proceedings against assessee unsustainable once discharge certificate is issued under SVLDRS [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019] Scheme. The Bench of Ashok Jindal (Judicial Member) and P. Anjani Kumar (Technical Member) was addressing the issue that in case where the assessee opts for SVLDRS Scheme and obtained discharge certificate can the proceedings by way of appeal by the Revenue is sustainable or not. In this case, the show cause notice has been issued and by way of adjudication, demand was confirmed and assessee has opted Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and obtain SVLDRS – 4 i.e. discharge certificate. The bench observed that if the assessee opts for the scheme, the applicant has to make a declaration in Form SVLDRS-1 and upon receipt of the declaration except in a case of voluntary disclosure of an amount of duty which is not in the case in hand as in this case show cause notice has been issued to the assessee on 09.07.2010. The said declaration is required to verified by the designated committee based on the particulars submitted by the declarant and if there is an discrepancy, the designated authority shall issue a notice to the declarant and thereafter SVLDRS is to be issued to the declarant after considering the submission made by the declarant and the material available on record and the declarant shall pay the amount as decided by the designated committee, thereafter discharge certificate is to be issued, added the bench. The bench stated that “no proceedings is sustainable against the respondent as discharge certificate has already been issued. In this case, it is the duty of the designated committee if declaration made by the respondent is not correct then a notice was required to be issued and thereafter to determine the correct amount of duty payable by the respondent. Admittedly, in this case no such notice was issued to the respondent and the declaration made by the respondent has been admitted by the designated authority”. The bench held that as Form SVLDRS has been issued to the respondent i.e. Discharge Certificate, therefore no demand is sustainable against the respondent. In view of the above, the Tribunal allowed the appeal. Case Title: Commissioner of Central Goods and Service Tax, Excise and Customs, Bhopal v. M/s. Akansha Sales Promoters Case Number: Excise Appeal No. 50135 of 2019 Counsel for Appellant/ Assessee: Rakesh Agarwal and S.K. Roy Counsel for Respondent/ Department: Deepika Gawri Tyagi Click Here To Read/Download Order

Proceedings Against Assessee Unsustainable Once Discharge Certificate Is Issued Under SVLDRS Scheme: CESTAT

Mehak Dhiman

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