QUESTION

Under Sabka Vishwas Scheme a notice issued only for LATE FEE or penalty is eligible. However (i) if NOT ISSUED any show cause notice for LATE FEE for late filing of ST-3 during July-2012 to September-2013, is eligible under Sabka Vishwas Scheme. If yes, under which category. (ii) Whether CGST officer can now issue show cause notice for such unpaid late fees. (iii) If he issue such show cuase notice, what can be the ground of reply.

ANSWER

Finance Act 2019
Tax dues

123. For the purposes of the Scheme, 'tax dues' means'

(d) where the amount has been voluntarily disclosed by the declarant, then, the total amount of duty stated in the declaration

Where

(d) 'amount of duty ' means the amount of central excise duty, the service tax and the cess payable under the indirect tax enactment;

In view of the above, Category of Voluntary disclosure is for duty and cess. Late fee does not amount to duty.

Your case does not fall in any other category and therefore you are not eligible to opt for SVLDRS. .

No SCN is issued till date and Department can issue SCN within five years from the relevant date as per Section 11A of Central Excise Act as follows:

(4) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by the reason of'

(a) fraud; or

(b) collusion; or

(c) any willful miss-statement; or

(d) suppression of facts; or

(e) contravention of any of the provisions of this Act or of the rules made there under with intent to evade payment of duty
by any person chargeable with the duty, the Central Excise Officer shall, within five years from the relevant date, serve notice on such person requiring him to show cause why he should not pay the amount specified in the notice along with interest payable thereon under section 11AA and a penalty equivalent to the duty specified in the notice.

Further we have observed that the extended period of issue of demand can't be invoked in your case because your case is related to 2012- 13 and time limit of five year fixed for issue of show cause notice under the erstwhile law is already expired