Indirect Tax Dispute Resolution Scheme 2016 Archives - Tax Heal

Indirect Tax Dispute Resolution Scheme 2016 Instructions

CA Satbir Singh — Fri, 03 Jun 2016 05:10:01 +0000

F No 1080/06/DLA/IDRS/2016
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Directorate of Legal Affairs

New Delhi the 01st June 2016

Instruction

All Chief Commissioners, Customs, Central Excise and Service Tax
All Principal Commissioners/ Commissioners, Customs, Central Excise and Service Tax

Sir,

Subject: Indirect Tax Dispute Resolution Scheme, 2016.

The Chapter XI of the Finance Act, 2016 (28 of 2016) comprising of section 212 to 218, is in respect of The Indirect Tax Dispute Resolution Scheme Rules, 2016. The said scheme allows the party in appeal before the Commissioner (Appeals) on 1st March 2016, to file a declaration before the Designated Authority for the purpose of availing the benefit of the scheme.

2. As per clause (e) to sub-section (1) to section 213 of the Finance Act, 2014, the “designated authority” means an officer not below the rank of Assistant Commissioner who is authorised to act as Assistant Commissioner by the Commissioner for the purposes of this Scheme;. As per the said clause (e) every Commissioner is required to authorize an officer not below the rank of Assistant Commissioner to function as Assistant Commissioner, Designated Authority for the purpose of this scheme. Accordingly you may get the Designated Authority, specified in your jurisdiction by the concerned Commissioners at the earliest. The details of Designated Authority so specified must be communicated to Commissioner Directorate of Legal Affairs.

3. The Indirect Tax Dispute Resolution Scheme Rules, 2016 has been notified by Notification No. 29/2016-CE(NT) dated 31st May 2016. These rules provide for the forms to be used for making the scheme operational. Following Forms have been prescribed by the said Rules:

(a) Form 1, has been prescribed for making declaration under the scheme.

(b) Form 2, is the form in which the designated authority shall give the acknowledgement about the receipt of declaration by him, Once such an acknowledgement has been given by the designated authority, the proceedings before the Commissioner (Appeals) shall remain suspended for sixty days, and the Commissioner will not proceed any further with the appeal till expiry of said sixty days.

(c) Form 3, is the form to be filed by the declarant giving the details of the amounts deposited by him as required under the scheme. Declarant has to deposit the sums required to be deposited by him within fortnight of the receipt of the dated acknowledgement and report the details of deposit made within seven days of making the deposit to the designated authority.

(d) Form 4, is the form in which the said designated authority shall pass an order of discharge of dues in respect of the case before Commissioner (Appeals) for which the declaration has been made in Form 1.

4. Commissioner will on receipt of the order in Form 4 from the declarant shall match the same with the copy received directly from the designated authority and shall remove the appeal from his pendency as being disposed off. Since the Commissioner (Appeals) has not decided on the issues raised in appeal, said disposal of appeal shall have no binding precedent value.

5. You should publicize the scheme in your jurisdiction so as to make it a success.

6. Any further issue which is noticed by you while making the scheme operational in your jurisdiction should be brought to the notice of board for suitable clarification.

Yours faithfully

(Sanjiv Srivastava)

Commissioner (DLA)

Indirect Tax Dispute Resolution Scheme 2016 Key Features

CA Satbir Singh — Wed, 01 Jun 2016 04:48:23 +0000

The Indirect Tax Dispute Resolution Scheme 2016

(The Indirect Tax Dispute Resolution Scheme 2016 covered in CHAPTER XI of Finance Act 2016 )

Key Features of Indirect Tax Dispute Resolution Scheme 2016

The Indirect Tax Dispute Resolution Scheme 2016 covered in CHAPTER XI of Finance Act 2016
The Indirect Tax Dispute Resolution Scheme 2016 shall come into force on the 1st day of June, 2016 and shall be applicable up to 31st day of December, 2016
The Indirect Tax Dispute Resolution Scheme 2016 shall not apply if:-

(a) the impugned order is in respect of search and seizure proceeding; or

(b) prosecution for any offence punishable under the Act has been instituted before the 1st day of June, 2016; or

(d) 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

(e) any detention order has been passed under the Conservation of Foreign Exchange and Prevention of Smuggling Act, 1974

Declaration under The Indirect Tax Dispute Resolution Scheme 2016 shall be made in duplicate in Form 1 in respect of the amount payable under the Scheme. ( To see form read Indirect Tax Dispute Resolution Scheme Rules 2016 Notified )
The designated authority, on receipt of declaration, shall issue a dated acknowledgement thereof in Form 2 within seven days of the receipt of declaration. ( To see form read Indirect Tax Dispute Resolution Scheme Rules 2016 Notified )
Copy of the declaration made and the acknowledgement issued by the designated authority shall be furnished within fifteen days of the receipt of acknowledgement by the declarant to the concerned Commissioner (Appeals) before whom the appeal in respect of which the declaration has been made is pending. On the receipt of the declaration and acknowledgement, Commissioner (Appeals) shall not proceed with the appeal in respect of which the declaration has been made for a period of sixty days from the date of receipt of information.
The declarant shall pay tax due alongwith the interest thereon at the rate as provided in the Act and penalty equivalent to twenty-five per cent. of the penalty imposed in the impugned order, within fifteen days of the receipt of acknowledgement and intimate the designated authority within seven days of making such payment giving the details of payment made along with the proof thereof in Form 3. ( To see form read Indirect Tax Dispute Resolution Scheme Rules 2016 Notified )
On receipt of the proof of payment of tax, interest and penalty , the designated authority shall, within fifteen days of the receipt of such proof, pass an order of discharge of dues in Form 4. ( To see form read Indirect Tax Dispute Resolution Scheme Rules 2016 Notified )
The declarant shall intimate the concerned Commissioner (Appeals) along with the copy of the order of discharge of dues issued by the designated authority before the expiry of the period of sixty days.
On the receipt of the information along with the copy of the order of discharge of dues issued by the designated authority, Commissioner (Appeals) shall remove the appeal from the list of pending appeals with him and intimate the declarant within seven days of the receipt of information.

Immunity under Indirect Tax Dispute Resolution Scheme 2016
- The appeal pending before the Commissioner (Appeals) shall stand disposed of and the declarant shall get immunity from all proceedings under the Act, in respect of the indirect tax dispute for which the declaration has been made under this Scheme.
- A declaration shall become conclusive upon the issuance of an order 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 under Indirect Tax Dispute Resolution Scheme 2016 shall not be refunded.