2008 (7) TMI 1069 - HC - Central Excise

Summary

Issues involved:
The petitioner challenged orders dated 22.07.99 and 03.11.99 passed by the respondent regarding the Kar Vivad Samadhan Scheme, 1998 (KVSS).

Summary:
The petitioner, a partnership firm, appealed against certain additions to its income for A.Y. 1994-95 before the Income Tax Appellate Tribunal, Ahmedabad. During this time, the Kar Vivad Samadhan Scheme, 1998 (KVSS) was introduced. The petitioner filed a declaration under KVSS on 31.12.98 and paid the tax arrears determined by the respondent on 03.03.99. However, the respondent rejected the petitioner's request for the benefit under KVSS, stating that the payment was made beyond the prescribed time limit. The petitioner challenged these orders in the present petition.

The petitioner's senior advocate argued that the 30-day time limit for payment under KVSS should be calculated from the date of receipt of the order, not from the date the order was passed. The advocate cited a Supreme Court judgment to support this interpretation. The Revenue's counsel contended that the period should be computed from the date of the order itself.

After considering the arguments and relevant provisions, the Court held that the 30-day period for payment under KVSS should be calculated from the date of receipt of the order. As the petitioner had made the payment within this timeframe, the Court allowed the petition, quashed the orders dated 22.07.99 and 03.11.99, and made the rule absolute with no order as to costs.