9911796707
TMI Blog2001 (7) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... the final order above mentioned, Tribunal has rejected the appeals of the appellants. 2. According to the Applicants, final order has been passed without noticing the statutory provision contained in Kar Vivad Samadhan Scheme (Removal of Difficulties) Order, 1998 dated 8-12-1998 relating to pending adjudication. It was submitted that since the order of the Tribunal is contrary to the well settled legal position, it is an obvious error apperent on the face of the record. It is their submission that even though show cause notice issued to the manufacturer i.e. M/s. Ashoka Boot Factory and its partners, (the applicants before us) had been adjudicated by the Commissioner, settlement in favour of the person who has made declaration under the K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of Section 97 of the Finance (No. 2) Act, 1998 the Central Government hereby makes the following order, namely :- 1. (1) This order may be called the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order, 1998 (2) It shall be deemed to have come into force on the day of 1st September, 1998. 2. Where a declaration to the designated authority has been made in respect of tax arrear in relation to indirect tax enactment for the amount of duties (including drawback of duty, credit of duty or any amount representing duty), cesses, interest, fine or penalty which constitutes the subject matter of a demand notice or a show cause notice issued on or before the 31st day of March, 1998 but remaining unpaid and pending determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of duties demanded in the show cause cause notices. Once the settlement amount (50% of the demand in show cause notice) is paid up, the person making declaration gets complete waiver from any other liability including penal action in that case. After the Scheme became operational w.e.f. 1-9-1998, attention of the Govt. has been drawn to the difficulties being encountered in settlement of certain categories of cases of pending show cause notices involving also certain co-noticees against whom penal action is proposed in the same case for the alleged involvement for the irregularities committed by the principal noticee. Requests have been received by the Govt. for issuing appropriate clarifications/orders as provided in the sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o not see any force in the submissions of the applicants that final order has been passed without noticing express statutory provisions contained in the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order, 1998. We also do not agree that the applicants were stopped from arguing on merits against imposition of penalty upon them. In this case, we find that what was argued before the Bench was only that the applicants were covered by the Kar Vivad Samadhan Scheme and that the partnership firm is not a distinct legal entity separate from the partners and, therefore, once penalty has been imposed upon the firm, penalty cannot be imposed upon the partners. These arguments have been considered and findings have been given thereon. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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