Indirect Tax Dispute Resolution Scheme, 2016

1.1.  The dispute resolution scheme aims to reduce the pending litigations before the first appellate authority (Commissioner Appeals). The said scheme is applicable in respect of dispute with respect to Customs Act, 1962, Central Excise Act, 1944 & Finance Act, 1994.
1.2. The said scheme aims at disposing of the pending appeals and the declarant shall get immunity from all the proceedings under the Act, in respect of indirect tax dispute.
1.3.  The said scheme shall come into force w.e.f. 01.06.2016 and the person desirous of applying under the said scheme shall apply by 31.12.2016. The said scheme can be applied only in cases where the impugned order is in challenge and is pending before the Commissioner (Appeal) as an appeal as on 31.03.2016.
1.4. Upon receipt of the declaration, the designated authority shall acknowledge the declaration in such manner as may be prescribed.
1.5. The declarant thereafter shall pay tax due along with the interest and penalty equivalent to 25% of the penalty imposed in the impugned order within 15 days of the receipt of acknowledgment. The declarant shall intimate the payment details within 7 seven days of making the payment along with the proof of payment.
1.6. The designated authority upon receipt of intimation payment shall pass an order of discharge of dues in such form as may be prescribed. Once the order is passed by the designated authority, the appeal pending before the Commissioner (Appeal) shall stand disposed and the declarant shall get immunity from all proceedings under respective Act.
1.7. The order so passed by the designated authority shall result in conclusion of proceedings and no matter relating to such order can be reopened thereafter before any authority or court. Further, the issue shall not be deemed to be decided on merits and does not have any binding effect.
1.8. Moreover, the amount paid under such declaration shall not be allowed to be refunded. However, the said scheme cannot be availed by the following assessee’s:
  7.8.1.  If  the impugned order is  in  respect of search and  seizure proceedings
  7.8.2. If the impugned order is in respect of prosecution instituted before 01.06.2016 for any offence punishable under the Act
  7.8.3. If the impugned order is in respect of narcotic drugs or other prohibited goods
 7.8.4. If the impugned order is in respect of any offence punishable under the Indian Penal Code, the Narcotics Drugs and Psychotropic Substances Act, 1985 of the Prevention of Corruption Act, 1988
  7.8.5. any detention order has been passed under the Conservation of Foreign Exchange and Prevention of Smuggling Act,  1974.