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TMI Blog2014 (7) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant did not deposited the tax so determined and also did not withdraw the petition filed by them before the Supreme Court within a period of 30 days from the date of issuance of certificate by the Designated Authority, the matter was held as settled before in terms of Kar Vivad Samadhan Scheme - Subsequently the Supreme Court decided the petition filed by the appellant in their favour and set aside the orders of the lower authorities confirming demands against them - Denial of refund claim of amounts paid by assessee. Held that:- When the amount of ₹ 10,94,130/- deposited by the appellant in terms of KVSS Scheme, at the time of filing the declaration stand appropriated by the Commissioner towards confirmed demand, the same becom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Commissioner vide his order dated 27.5.93. The said order of the Commissioner was challenged before the Tribunal, who confirmed the demand. Thereafter, the matter went before the Hon ble Supreme Court. 2. When the matter was pending before the Hon ble Supreme Court, Kar Vivad Samadhan Scheme was introduced with effect from 1.9.98 for settling tax arrears which stand lying under litigation. The appellant filed a declaration in terms of section 88 of the said scheme. An amount of ₹ 10,94,130/- was also paid by them. The said application made under Kar Vivad Samadhan Scheme was decided by the Designated Authority directing the appellant to make a full and final settlement of their tax arrears to the extent of ₹ 29,80,76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and as the dispute has not been settled under Kar Vivad Samadhan Scheme, the assessee is not entitled to the refund of amount paid in pursuance of declaration made under section 88, in terms of Section 93 of the Tax Act, 1988. The said section is to the effect that any amount paid in pursuance of the declaration made under Section 88 shall not be refundable under any circumstances. 6. The Commissioner (Appeals) accepted the Revenues stand that inasmuch as the said amount was paid under the provisions of Kar Vivad Samadhan Scheme, the same cannot be refunded to the assessee in terms of section 93 of the Finance Act, 1988, even if the appellants dispute has been settled under Kar Vivad Samadhan Scheme. Accordingly, he accepted the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants succeed at the Supreme Court stage, they become entitled to the refund of entire duty either directly deposited by them or appropriated by the Commissioner. As such, in my view the revenues technical objection that the provisions of Section 93 of the Finance Act, 1998, do not allow the refund of deposits made by assessee at the time of making a declaration cannot be appreciated inasmuch as by appropriating the said deposits towards the confirmed duty demand, the deposits inter alia remain deposit in terms of Section 88 of KVSS Scheme. 9. Apart from the above, I also find favour in the appellants stand that erroneously granted refunds are required to be recovered by way of issuing Show cause notice under section 11A of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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