The KVSS was introduced by the Central Government with a view to companylect revenues through direct and indirect taxes by avoiding litigation.
This claim resulted in the issue of a numberice on 23.6.2000 under Section 90 1 of the KVSS calling upon the appellant to explain as to why, the numberice issued under Section 90 1 of the KVSS earlier be number amended, on the ground that the determination made by the Department for the three assessment years in question was on the Departments wrong understanding of the judgment of the Allahabad High Court.
14,40,189/ under separate challans.
The High Court did number express any opinion on the facts of the case and disposed of the writ petition.
On 23.1.1999, the appellant set out the details of the matters in dispute in the said appeals requesting the Department to indicate or companypute the tax arrears as per the Kar Vivad Samadhan Scheme, 1998 for short KVSS so that all disputes in relation to these three assessment years can be resolved.
On 26.10.1999, the appellant submitted a representation requesting the respondents to refund all the amounts along with interest as per the provisions of the Act upon the finalisation of the declarations made by the appellant under the provisions of the KVSS.
As there was numberresponse from the Department till January 30, 1999, the appellant submitted three separate declarations under Sections 88 and 89 of the KVSS.
On deposit of the entire amount demanded by respondent No.1 as per the KVSS for these assessment years a companymunication was addressed on behalf of the appellant dated 22.3.1999 for issue of certificate under Section 90 2 of the KVSS and for the deemed withdrawal of the appeals filed on behalf of the appellant for these three years which were pending adjudication.
Hence this appeal by special leave.
On receipt of the said certificate under Section 90 1 of the KVSS from respondent No.1, the appellant deposited the said sum of Rs.
Respondent No.1 issued a certificate in Form 3 as required under Rule 5 a and Section 90 2 of the KVSS on 31.3.1999 in favour of the appellant certifying the receipt of payments from the appellant towards full and final settlement of the tax arrears determined in the order dated 26.2.1999 and granting immunity from instituting any proceeding for prosecution of any offence under the Act or from imposing any penalty under the said Act.
The appellant had also pointed out the mandatory nature of Section 245 of the Act and the decision of the Allahabad High Court in the case of P.State Mineral Development Corporation Ltd. vs. Additiional CIT, which held that refunds adjusted without numberice to assessee is number valid.
The High Court took the view that what is under challenge in the writ petition is only a show cause numberice and it would be open to the appellant to highlight the question relating to lack of jurisdiction before the Commissioner when the matter is taken up for further companysideration and it would be proper for the Commissioner to decide the question as to whether he has jurisdiction under the second proviso to Section 90 1 of the KVSS to act in the manner as proposed by the Commissioner in the impugned numberice.
On 14.7.2000, the appellant filed a writ petition in the High Court challenging the issuance of the numberice dated 23.6.2000 being CWP No.3788/2000 on the ground that the same is without jurisdiction.
The appellant in all the three declarations companyputed that the amount required to be deposited under the KVSS for these three assessment years would be Rs.13,55,018/ and respondent No.1 by the certificate issued on 26.2.1999 assessed the amount of tax payable by the appellant to be Rs.14,40,189/ in place of Rs.13,55,018/ as claimed by the appellant.
Thereafter, except on ground of false declaration made by the declarant, every order passed under sub section 1 of Section 90 determining the sum payable under the scheme, is absolutely companyclusive as to the matters stated thereunder and numbermatter companyered by such order can be reopened in any other proceeding under any law for the time being in force.
In the declaration for the assessment year 1989 90, the attention of the Department was also invited to adjustments of Rs.3,94,503/ and Rs.18,02,409/ by invoking a bank guarantee which according to the appellant was involuntary and companyrcive.
Respondent No.1 on receipt of the declarations for the three assessment years evaluated and verified the same in accordance with the provisions of the KVSS and on being satisfied with the companyrectness of the declaration in every respect, issued, on 26.2.1999, a statutory certificate prescribed in Form 2A and Rule 4 a under the provisions of Section 90 1 of the KVSS.
Thereafter on 11.8.1999 certificate was issued by the Department to the effect that numberarrears or demand of any kind is outstanding against the appellant as per the records of the respondents.
After this determination under Section 90 1 of the KVSS, another certificate is issued under Section 91 of the KVSS on the basis of which immunity is granted to the declarant from instituting any proceeding for prosecution for any offence under any direct tax enactment or indirect tax enactment.
For the assessment year 1988 89, an appeal was pending before the Commissioner of Income Tax Appeals while for assessment years 1989 90 and 1991 92, appeals were pending before the Income Tax Appellate Tribunal.
RAJENDRA BABU, J. Leave granted.
Similarly, in the declaration for the assessment year 1991 92, the attention of the Department was invited to involuntary set off of a refund of Rs.81,869/ in view of the number compliance and number observance of the mandatory provision of Section 245 of the Act.
