Inverted duty structure - Refund of Input services allowed (See 'THE INSIGHT')Dr Harsh Vardhan digitally interacts with MP CM (See 'TOG News')COVID-19: Highest ever single day recoveries of 54,859 today (See 'TOG News')Goyal to dedicate Railway Museum at Hubballi to Nation (See 'TOG News')Agri Infrastructure Fund to generate job opportunities in rural economy: HM (See 'TOG News')I-T - Dismissal of appeal for being filed in name of a non-existent company amalgamated with another entity, is not tenable, where the court omits to consider an order passed by the HC regarding automatic transfer of litigations of transferor companies to transferee: HC (See 'TOG Latest')I-T - ATM units qualify as computers & are eligible for higher rate of depreciation - expenses incurred on taking premises on lease & on improving them qualify as revenue expense as such premises do not belong to the assessee & no capital asset arises therefrom: HC (See 'TOG Latest')Central Excise - Violation of principles of natural justice are per se insufficient to invoke extraordinary jurisdiction of High Court - issue of denial of opportunity to cross examine relevant witnesses can also be canvassed before the Tribunal: HC (See 'TOG Latest')VAT - An exemption notification has to be interpreted in a strict manner without adding any words to it - Carbide tip tools are treatable as consumable goods & are entitled for exemption, since they lose their utility upon use by the purchases & cease to remain tools or cutting devices: HC (See 'TOG Latest')Tomar, Goyal flag off first 'Kisan Rail' (See 'TOG News')Health Ministry engages with Districts reporting higher COVID-19 mortality (See 'TOG News')TP - Where main relief is granted on the basis of one reason, the adjudication of exclusion of a comparable company for other reasons may not be necessary - rectification application seeking adjudication of secondary grounds, need not be entertained: ITAT (See 'TOG Latest')I-T - Quantum of additions made on account of bogus purchases merits being restricted, where AO relies solely on information sourced from DGIT (Inv) without conducting independent inquiry & where assessee too fails to disprove such charges: ITAT (See 'TOG Latest')Central Excise - It is settled position in law that CENVAT credit is allowed in respect of Cargo Handling Services used for clearance of final product from the port for export: CESTAT (See 'TOG Latest')Central Excise - Goods which are not removed from factory without payment of duty, do not become contravening goods & so are not liable for confiscation - similarly, provisions of CEA 1944 do not enable seizure or confiscation of raw materials: CESTAT (See 'TOG Latest')NEP is based on holistic approach: PM (See 'TOG News')Is there a time limit to avail ITC of GST paid under Reverse Charge? PART-II (See 'THE INSIGHT')
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SVLDRS, 2019 needs to be extended further
By S Ramani
Jan 13, 2020

SABKA Vishwas Scheme is introduced to close issues pending under the erstwhile Central Excise Act 1944 and Chapter V of Finance Act 1994 among others with payment of partial Duty/Tax liability with waiver of interest/ penalty and immunity from prosecution.

The Scheme is available to Legacy issues where SCNs issued as of 30.6.2019 or duty liability has been quantified by Audit on or before 30.6.2019 and such other cases covered therein.

When the Scheme is meant to address Legacy issues especially the cases arising out of Audit, the limitation as to Duty/Tax being quantified on or before 30.6.2019 is highly discriminatory.

The reason being there are cases Legacy Audit process had been taken up by the Dept. well ahead of June 2019 (even as of 2017-18) and finalization of audit and quantification of Duty/Tax are delayed for no fault of Assessees. In these cases, assesses who are served with letter quantifying the duty/ Demand of Duty/Tax arising out of Audit after 30.6.2019 are deprived of the benefits given under this scheme.

When the purpose of the scheme is to close all Legacy issues there should not be differential treatment and the scheme should have been drafted in such a way the same effectively addresses all Legacy issues without discrimination.

Scheme should have been thrown open upto March 2020 giving option to file declaration arising out of all Legacy matters before the said date without confining the date of occurrence of SCN or Demand as "on or before 30.6.2019."

Also CBIC should have issued mandate to all field officials to complete Legacy audit before 31.3.2020 and the SVLDRS scheme should have been offered to all assesses who have been served with Duty demand as of 31.3.2020. If not, the Scheme would be deemed to be discriminatory and fit to be challenged.

[The author is General Manager (Legal & Indirect Taxation), Simpson and Company Ltd., Chennai and the views expressed are strictly personal.]