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

(c) the impugned order is in respect of narcotic drugs or other prohibited goods; 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.

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