Bombay HC on eligibility for Benefit of Kar Vivad Scheme,1998

1. By this petition under Article 226 of the Constitution of India, the petitioners are seeking a writ, order or direction calling for the papers and proceedings pertaining to order/letter dated 8­2­1999 and after ascertaining its legality and validity to quash and set aside the same.

2. The petitioners are also seeking a writ of mandamus or any writ or direction in the nature thereof directing the respondents to forthwith accept and act upon the petitioners’ declaration furnished under a scheme which is styled as Kar Vivad Samadhan Scheme, 1998 and to pass the requisite orders in terms thereof. In other words, a long standing dispute between the petitioners and the Department be settled in accordance with the Scheme.

3. The petitioners state that by the impugned order dated 8­-2­-1999, the Office of the Commissioner of Central Excise, Mumbai-­IV, informed the petitioners that Declaration No.46/98, dated 10­-12­-1998, filed by the petitioners under Kar Vivad Samadhan Scheme, 1998 for settlement was considered, but it was noticed that a sum of Rs.54,67,867/­, claimed  by the petitioners as tax arrears under dispute are in fact the outcome of the Hon’ble Supreme Court’s Judgment in Writ Petition Nos. 2693 of 1993 and 12744 of 1984. Since the Hon’ble Supreme Court of India has given a decision in favour of the Revenue, these dues are payable. The matter has already been decided by the Hon’ble Supreme Court and the amount  in arrears is the balance amount of total duty payable by the petitioners. It cannot be said that the amount in question is in dispute as no appeal is pending against the same in the Supreme Court. Hence, the tax arrears in question are not in dispute as on the date of filing of the declaration. So, the benefit of the Scheme cannot be extended to the declarant.