Excelsior Correspondent
JAMMU, May 23: Chairman, Association of Large & Medium Enterprises (ALME), Jammu region, Pardeep Gandotra (CA) called on Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman at Delhi to present a memorandum requesting for review of rejection orders passed under `Sabka Vishwas Scheme’ where writ petitions are pending before High Court of Jammu & Kashmir and Ladakh.
It was submitted that 82 applications covering an expected revenue effect of Rs 150-200 crores were filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in J&K. It was pointed out that all these applications were rejected as the department wrongly considered it as a case of erroneous refund whereas area based exemption covered by Notification 56/2002 is not a case of “erroneous refund” but actually a case of exemption under section 5A of the Central Excise Act 1944.
The rejection orders passed under `Sabka Vishwas Scheme’ were therefore, challenged in writ petitions before High Court of Jammu & Kashmir and Ladakh. In response to these writ petitions High Court has restrained the department from passing final order in respect of the show cause notices under challenge till final disposal of the writ petitions. The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was a unique opportunity to the tax payers to close their long pending disputes which provide full waiver of interest, penalty, fine and immunity from prosecution. In addition, the Scheme also provides for relief ranging from forty percent to seventy percent of the tax dues for cases other than voluntary disclosure cases, depending on the amount of tax dues involved.
In view of the above, the Finance Minister was requested to consider the submissions and direct the concerned authorities to consider such cases in J&K under exemption notification for the purpose of SVLDR Scheme. This will not only reduce the litigation to a large extent but will also garner an amount of Rs 150 to 200 crores as revenue, he submitted.
It was further submitted that in case the request for review is not feasible, such cases where the assessee undertakes to pay the principal amount of tax, the interest and penalty may kindly be waived off as a special case.
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