Haryana Government launched the One Time Settlement-2023 (OTS) Scheme
About Scheme
“The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2023“, is notified by Governor of Haryana on 30.12.2023. The same is made effective from 01.01.2024. This One Time Settlement Scheme addresses outstanding tax issues from the Excise and Taxation Department until June 30, 2017. It specifically resolves concerns related to seven VAT-related acts.
Any amount paid under this scheme shall neither be paid through Input tax credit nor shall be allowed to be claimed as Input tax credit by any person under the relevant Act or any other Act.
No appeal shall lie before any appellate authority under the relevant Act, High Court or Supreme Court against the final orders passed by the jurisdictional authority under this scheme.
Applicability of the Scheme
The scheme aims to resolve tax liabilities concerning following Acts, namely :-
(i) The Haryana Value Added Tax Act, 2003 (6 of 2003);
(ii) The Central Sales Tax Act, 1956 (Central Act 74 of 1956) ;
(iii) The Haryana Local Area Development Tax Act, 2000 (13 of 2000);
(iv) The Haryana Tax on Entry of Goods in to Local Areas Act, 2008 (8 of 2008) ;
(v) The Haryana Tax on Luxuries Act, 2007 (23 of 2007) ;
(vi) The Punjab Entertainment Duty Act, 1955 (Punjab Act 16 of 1955) ;
(vii) The Haryana General Sales Tax Act, 1973 (20 of 1973)
The applicants whose outstanding dues have been uploaded by the jurisdictional authority in FORM GST DRC-07A of the Haryana Goods and Services Tax Rules, 2017 for recovery of such dues under the Haryana Goods and Services Tax Act, 2017 (19 of 2017) shall also be eligible to take the benefit of the scheme.
The jurisdictional authority shall after successful issuance of FORM OTS-4 modify the demand created through FORM GST DRC-07A and issue FORM GST DRC 08A of the Haryana Goods and Services Tax Rules, 2017.
Timeline to opt for the Scheme
The applicant may opt for the scheme within ninety days from the appointed day. The appointed day as per Notification No. 72/ST-1.dated 31.12.2023 is 01.01.2024. Accordingly, the application to be made between 01.01.2024 to 31.03.2024.
Process to opt for the Scheme
- The applicant shall apply online in FORM OTS-1 along with proof of payment of the settlement amount or the first installment, whichever is applicable. On receipt of FORM OTS-1, a system generated acknowledgement shall be issued electronically to the applicant in FORM OTS-2.
- The jurisdictional authority shall examine FORM OTS-1 within thirty days from the date of acknowledgement and send the application along with his comments for the recommendations to the Deputy Excise and Taxation Commissioner (hereinafter referred as “DETC”) concerned.
- The DETC shall further examine the application within fifteen days and send the case back to the jurisdictional authority for either issuing deficiency notice in FORM OTS 3 or provisional settlement order in FORM OTS 4A (where the applicant has opted for installments or is supposed to submit proof of withdrawal of appeal) or a final order of settlement in FORM OTS 4.
- On receipt of communication from the DETC, the jurisdictional authority shall issue within fifteen days a deficiency notice in FORM OTS 3 or provisional settlement order in FORM OTS 4A or a final order of settlement in FORM OTS 4, as the case may be.
- The applicant shall submit his reply in FORM OTS-3A electronically within fifteen days of the date of issuance of deficiency notice in FORM OTS-3 along with requisite documents or proof of payment as required.
- On receipt of the reply of the applicant in FORM OTS-3A, the jurisdictional authority shall examine and send the case to the DETC with his recommendations within fifteen days from the date of FORM OTS-3A. The DETC shall examine the case within fifteen days and direct the jurisdictional authority either to issue provisional settlement order in FORM OTS 4A or a final order of settlement in FORM OTS 4 or an order of rejection in FORM OTS-5.
- On receipt of the directions issued by the DETC, the jurisdictional authority, shall within fifteen days from the receipt of such communication issue a provisional settlement order in FORM OTS 4A or a final order of settlement in FORM OTS 4 or an order of rejection in FORM OTS-5.
Withdrawal of Appeal
- Any applicant interested to opt for the scheme shall withdraw the appeal, if any, pending before the appellate authority under the relevant Act, High Court or Supreme Court in respect of any statutory order, fully and un-conditionally and submit proof of such withdrawal of appeal in FORM OTS-6 within one hundred eighty days from the receipt of FORM OTS 4A electronically to the jurisdictional authority before the final order of settlement.
- In case FORM OTS-6 is not furnished within one hundred eighty days from the receipt of FORM OTS 4A, it shall be presumed as if the application was never made and pending proceedings under the applicable relevant Act shall continue against the applicant.
- Any proceeding pending before any appellate authority under the relevant Act, High Court or Supreme Court shall be kept in abeyance till the final order of settlement in FORM OTS-4 or order of rejection in FORM OTS-5 is passed under this scheme, for those applicants who are opting this scheme.
- Where order of rejection of settlement in FORM OTS-5 is issued, the amount paid, if any, by the applicant shall be adjusted against his liabilities under the relevant Act and such amount shall not be refunded in any case.
Conclusion of tax liabilities
The final order of settlement passed under this scheme with respect to the amount payable under this scheme shall be conclusive as to the matter and time stated therein and the applicant shall not be liable, –
(a) to pay any further tax, interest or penalty with respect to the matter and time period covered in the final order of settlement;
(b) to be prosecuted under the relevant Act with respect to the matter and time period covered in the order;
All matters and time period covered by such order shall not be re-opened in any other proceedings under the relevant Act.
Exception: Provided that in case where any material particular furnished in the application is subsequently found to be false, within a period of two years from the date of order of settlement, it shall be presumed as if the application was never made and proceedings under the applicable relevant Act shall be instituted against the applicant.
Any amount of tax, interest or penalty or any other sum payable or paid before the appointed day shall not be refunded or adjusted under this scheme.
Rectification of Order passed under the Scheme
The authority who has passed the final order under this scheme, may rectify any error which is apparent on the face of record in such order, either on his own motion or where such error is brought to his notice by the affected person within a period of 30 days from the date of issuance of such order.
In case of any doubt arising out of this scheme, the decision of the Excise and Taxation Commissioner, Haryana thereon shall be final.
Scheme not applicable to –
The following applicants shall not be eligible to opt for the scheme in case,-
(a) criminal proceedings have been initiated against the applicant for any reason(s) under the relevant Acts;
(b) the demand relates to erroneous refund(s) under the relevant Act.
Settlement scheme
Schedule –I: Settlement amount to be paid in lieu of outstanding dues
Notification
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