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TMI Blog1999 (12) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing from KVSS since their cases were answering the material requirements of the provisions of KVSS. Broadly speaking, the petitioners have business of manufacturing of paper based decorative laminated sheets popularly known as "laminates". According to the case of the assessees, the said product fell under Chapter 48 of the Central Excise Tariff whereas according to the case of the Revenue, it fell under Chapter 39. The petitioners submitted that various such manufacturers, successfully, claimed the benefit of KVSS for the demands in difference in duty of excise raised against them for the period from the year 1985 to 1995 when all such manufacturers had discharged the duty liability of these goods under Chapter 48 of the Tariff and except the Ahmedabad Commissionerate, nowhere else in the country, declarations filed by other similarly situated manufacturers for the demands for the same period on the same grounds have been rejected. 3.The declarations came to be filed in all cases arising out of this group before 31st January 1999 before the Designated Authority under the KVSS. Except two matters, like that, Special Civil Application No. 2229/99 and 5188/99, all the matters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise, respondent No. 4, adjudicated the show cause notices. 6.Needless to highlight and elaborate the fundamental design and desideratum of the KVSS 1998. It is more participative, liberal and distributive. The objectives of the Scheme, as such, are very well known by now. In reality, it is one of the statutory recognizable methodologies of Alternative Dispute Resolution (ADR) in respect of the old pending disputes involving astronomical stakes. The very expression "samadhan" is indicative of settlement and samadhan scheme which means settlement scheme is aimed at achieving the twin objectives of effective settlement of outstanding disputes on one hand and raising resources on the other. From the point of view of revenue department, huge funds are locked in and blocked up in various litigations in various courts which, if realised, could be, successfully, used and ploughed back in the developing economic country, like ours. Sometimes taxpayers are put to prolonged and meaningless litigations for several years. Needless to reiterate that even an end of fraction or part of pending litigations will turn out to be a boom and welcome breather and more redeeming hope culmina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Scheme. (3) The amount remained unpaid at the relevant time. In the remaining two petitions being, Special Civil Application Nos. 2229 of 1999 and 5188 of 1999, the only difference, while other factors being the same, was referable to the pendency of show cause notice prior to March 31, 1998 and the same has remained unadjudicated 3-12-99. 9.Let us have a look, at this juncture, at the statutory provisions. In so far as indirect tax is concerned, the relevant provisions is section 87(m) (ii) which reads as under :- "87. Definitions. - In this Scheme, unless the context otherwise requires --- xxxxx xxxxx (m) (i)............. (ii) in relation to indirect tax enactment -- (a) the amount of duties (including drawback of duty, credit of duty or any amount representing duty), cesses, interest, fine or penalty determined as due or payable under that enactment as on the 31st day of March, 1998 but remaining unpaid as on the date of making of declaration under section 88 ; or (b) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent of the amount of such fine, penalty or interest, due or payable as on the date of making a declaration under Section 88. (ii) in any other case, at the rate of fifty per cent, of the amount of duties (including drawback of duty, credit of duty or any amount representing duty) or cesses due or payable on the date of making a declaration under Section 88. 11.It is quite apparent from the aforesaid statutory provisions incorporated in sub-clause (ii) of clause (f) of Section 88 that it shall be at the rate of 50 per cent of amount of duty including drawback of duty, credit of duty or any amount representing duty or cesses due or payable on the date of making a declaration under Section 88. Let it be noted, at this stage, that the date prescribed or the cut-off date for filing a declaration under KVSS was initially 31st December, 1998, which came to be extended till 31st January, 1999. The declarant means a person making a declaration under Section 88 and he has to make the declaration before the Designated Authority and the expression "Designated Authority" is also statutorily defined. 12.There is another interesting and very relevant provision to be noted is Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instructions as to the guidelines, principles or procedures to be followed by the authorities in the work relating to administration of the scheme and collection of revenue and any such order may, if the Central Government is of opinion that it is necessary in the public interest so to do, be published in the prescribed manner." 14.It becomes crystal clear that by virtue of the statutory authority, the Central Government is empowered to issue directions. In all the cases, in this group of matters, show cause notices came to be issued prior to the cut-off date, like that, 31st March, 1998 whereas the adjudication came to be made in some of the cases thereafter and the amount had not been paid and the appeals were pending. Obviously, therefore, any direction, order or for that purpose instruction issued by the Central Government in relation to the scheme, statutorily, will be binding on the authorities. In this connection, our attention is drawn to the clarification/instruction issued under Section 96(1) of the Finance (No. 2) Act, 1998 issued by the Commissioner of Central Excise and Customs, Ahmedabad-I, Trade Notice No. 108/98, dated 2-11-1998 based on C.B.E. C. letter F. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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