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April 2016

Customs, Excise and Service Tax Dispute Resolution Scheme, 2016

By Tarun Ghia, Pratik Mehta, Brijesh Cholera Chartered Accountants
Reading Time 1 mins
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Indirect Tax Dispute Resolution Scheme, 2016

Chapter XI of Finance Bill, 2016 has introduced the Indirect Tax Dispute Resolution Scheme, 2016 in order to reduce litigation and an environment of distrust in addition to increasing the compliance cost of the tax payers and administrative cost for the Government. The Scheme shall come into force with effect from 01.06.2016. This scheme is applicable to the declarations made up to 31.12.2016.

All the appeals pending before the Commissioner (Appeals) as on 01.03.2016 under the Central Excise Act, 1944 or the Customs Act, 1962 or the Finance Act, 1994 are eligible for settlement under the Dispute Resolution Scheme. However, if the impugned order is in respect of certain specified cases, the same cannot be settled under the Dispute Resolution Scheme, 2016.

Further, the cases of eligible assessees can be concluded by paying disputed tax along with interest and penalty equal to 25% of the penalty imposed under the impugned order. The eligible assessees are required to make declaration for settlement after enactment of the Finance Act 2016 between 01.06.2016 and 31.12.2016.

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