Clarifications issued on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

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The Board has received further references from field formations as well as from the trade seeking certain clarifications on the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (“SVLDRS” or “the Scheme”) after Circular No. 1071/04/2019-CX dated August 27, 2019, Circular No. 1072/05/2019-CX dated September 25, 2019 and Circular No. 1073/06/2019-CX dated October 29, 2019 were issued.

The CBIC has examined the issues which are now clarified vide Circular No. 1074/07/2019-CX dated December 12, 2019, in the context of the various provisions of the Finance (No.2) Act, 2019 and Rules made thereunder.

The gist of the important clarifications is given as under:

S.No. Issue/ Relevant provision



Section 124(2) of the Scheme provides for adjustment of any amount paid as pre-deposits but does not talk about the amount paid after the issuance of show cause notice (“SCN”) but before adjudication that may have not been appropriated due to pendency of adjudication proceedings are to be adjusted as pre-deposits.

Whether such deposits are to be deducted/adjusted?

Amount paid after SCN but before adjudication to be adjusted as pre-deposits-


In view to facilitate taxpayer, as well as to recognise and appropriate these deposits, it is clarified that such deposits are to be deducted/adjusted when issuing the statement indicating the amount payable by the declarant.


Whether the deposits made during enquiry, investigation or audit etc made ‘under protest’ needs to be adjusted?



Adjustment of deposits made ‘under protest’-

Yes, the deposits made during enquiry, investigation or audit etc made ‘under protest’ needs to be adjusted by the designated committee in order to determine the final amount payable by the declarant.



Whether there will be refund in case of excess deposit in any case?

No Refund under the Scheme-

As per Section 130(2) of the Scheme there is no question of refund of any excess deposit in any case.


Since, June 30, 2019 was a public holiday, what will be the last day of the prescribed period in the Scheme?

Relevant date under the Scheme-

As per Section 10(1) of the General Clauses Act, 1897, any act or proceeding allowed to be done in any office on a certain day or within a prescribed period, then, if the office is closed on that day of the prescribed period, the act or proceeding shall be considered as if it is done on the next day afterwards on which the office is open. Therefore, relevant date shall be considered as July 1, 2019 instead of June 30, 2019


What will be the relevant date in cases where it may so happen that the facts of a case may change subsequently for e.g., in a case under audit/ investigation/ enquiry where tax dues have been quantified on or before June 30, 2019, a show cause notice is issued after June 30, 2019. Similarly, a case, under appeal as on June 30, 2019 may attain finality in view of appeal period being over etc.

Eligibility to be determined as on June 30, 2019

The eligibility w.r.t. a category in such cases shall be as it was on relevant date i.e., June 30, 2019.


Whether in terms of Rule 3 of Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 (“SVLDRS Rules”), separate declaration is to be filed for each para in the audit report?

Separate or combined declaration w.r.t. different paras of audit report-


It is clarified that in such cases the option is available with the taxpayer to file separate declarations for each para or to file a declaration for two or more paras together.


In the case of proprietorship firm, in some cases, name of proprietor is mentioned as declarant and not the name of the firm.

Issues related to Form SVLDRS-1-


In such cases, form SVLDRS-1 can be processed with the name of proprietor as declarant.


Some units that have been closed long back before introduction of PAN based CX registration are not able to file SVLDRS due to mandatory requirement of PAN. Same problem is faced by overseas service providers. Whether PAN is mandatory for such cases?

Mandatory requirement of PAN waived in specified cases-


PAN is not mandatory in such cases, the designated committee may waive such requirement in case of any other similar cases, based on facts.


What will happen to the cases where the SCN were issued on or after July 1, 2019 and the same are also not covered under Audit (with amount quantified) or any other category.

Such cases become eligible under ‘arrears’ category depending on the fulfilment of the other conditions such appeal period being over or appeal having attained finality or the person giving an under taking that he will not file an appeal in the matter.

It is desirable that such cases shall also be given opportunity to avail the benefit of the Scheme. Hence, field formations were asked to take stock of such cases and complete the on-going adjudication proceedings expeditiously following the due process.


Cases where during subsequent investigation, it is discovered that the taxpayer has declared and paid lesser duty in the returns filed, therefore on conclusion of investigation etc. a SCN is issued demanding the differential duty. Will the discharge certificate be considered conclusive under Section 129 of the Scheme?

Conclusiveness of discharge certificate-

The term ‘matter’ under Section 129 of the Scheme means a case for which the taxpayer intends to file a declaration under the Scheme. In the instant case, a ‘return filed but duty not paid’ is separate matter and the SCN issued for ‘differential amount’ is a separate matter.


The complete clarification issued by the board can be accessed at: