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Government’s indirect tax litigation reduction scheme 'Sabka Vikas' challenged

Government’s indirect tax litigation reduction scheme 'Sabka Vikas' challenged

The government’s indirect tax litigation settlement scheme—Sabka Vikas (Legacy Dispute Resolution)—has landed in litigation, reports Sachin Dave.

Introduced in 2019, the scheme, which was aimed at freeing “a large number of small taxpayers of their pending disputes with the tax administration”, has been challenged in the Madhya Pradesh High Court.

The scheme offered tax payers settlement of pending central excise and sales tax issues by paying a portion of the tax demanded.

The point of contention is whether the amount in arrears defined in the scheme would cover the disputed interest of the earlier regime.

The petitioner has challenged the tax department claiming that the interest charged on the pending tax should be included in the scheme.

As per the scheme, the name of the taxpayer has to be kept under the wraps. ET has refrained from naming the petitioner.

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