Salient Features of the Indirect Tax Dispute Resolution Scheme 2016

A scheme in respect of cases pending before Commissioner (Appeals), the assessee, after paying the duty, interest and penalty equivalent to 25% of duty, can file a declaration, is being introduced. In such cases the proceedings against the assessee will be closed and he will also get immunity from prosecution. The Salient Features of the Indirect Tax Dispute Resolution Scheme 2016 are as under:

S. No.

Particulars

Remarks

1.

Date of commencement of Scheme  It shall come into force from 01-06-2016. This scheme will be available for the declarations made up to the 31-12-2016.

2.

Acts Covered
  • The Customs Act, 1962
  • The Central Excise Act, 1944
  • Chapter V of the Finance Act, 1994

3.

What includes in “indirect tax dispute” A dispute in respect of any of the provisions of the Act which is pending before the Commissioner (Appeals) as an appeal against the impugned order as on the 01-03-2016.

4.

Form of Declaration  Will be prescribed by the CBEC

5.

Procedure for Remedy
  • The declarant shall pay tax due alongwith the interest thereon at the rate as provided in the Act and penalty equivalent to 25% of the penalty imposed in the impugned order, within 15 days of the receipt of acknowledgement under sub-section (2) and intimate the designated authority within 7 days of making such payment giving the details of payment made along with the proof thereof.
  • On receipt of the proof of payment of tax, interest and penalty under sub-section (3), the designated authority shall, within 15 days of the receipt of such proof, pass an order of discharge of dues referred to in sub-section (3) in such form as may be prescribed.

6.

Cases in which Scheme not apply
  1. the impugned order is in respect of search and seizure proceeding; or
  2. prosecution for any offence punishable under the Act has been instituted before the 01-06-201; or
  3. the impugned order is in respect of narcotic drugs or other prohibited goods; or
  4. impugned order is in respect of any offence punishable under the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985 or the Prevention of Corruption Act, 1988; or
  5. any detention order has been passed under the Conservation of Foreign Exchange and Prevention of Smuggling Act, 1974.

7.

The order of this Scheme is Final
  • A declaration made under sub-section (1) of section 211 shall become conclusive upon the issuance of an order under sub-section (4) of section 211 and no matter relating to the impugned order shall be reopened thereafter in any proceedings under the Act before any authority or court.
  • Any amount paid in pursuance of a declaration made under sub-section (1) of section 211 shall not be refunded.

 

The Indirect Tax Dispute Resolution Scheme, 2016 as introduced in Finance Bill 2016

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