- (1.) The question arises as to applicability of Kar Vivad Samadhan Scheme (KVSS), 1998 to the case in question. The relevant provisions of KVSS Scheme, viz. Section 95(ii)(a), (b) and (c) are quoted below : "95. Scheme not to apply in certain cases. - The provisions of this Scheme shall not apply - (i) .... (ii) in respect of tax arrear under any indirect tax enactment, - (a) in a case where prosecution for any offence punishable under any provisions of any indirect tax enactment has been instituted on or before the date of filing of the declaration under section 88, in respect of any tax arrear in respect of such case under such indirect tax enactment; (b) in a case where show cause notice or a notice of demand under any indirect tax enactment has been issued; (c) in a case where no appeal or reference or writ petition is admitted and pending before any appellate authority or High Court or the Supreme Court or no application for revision is pending before the Central Government on the date of declaration made under section 88."
(2.) It is apparent that the scheme is not applicable when no notice has been issued. In the instant case, as apparent from the Notice dated 31-3-1998 being Annexure 'A' that a specific demand of Rs. 3,22,01,357.00 along with interest at the rate of 24% per annum had been raised. The duty demanded along with interest was required to be paid within 3 days on receipt of the letter. Thus, it is preposterous to suggest that it was not a notice of demand under any indirect tax and enactment. It was clearly a notice of demand under the Customs Act.
(3.) The cut-off date was 31-3-1998 as notice had been issued on 31-3-1998. It was clearly covered under KVSS Scheme as apparent from the provisions contained in Section 95(ii)(b) of the KVSS Scheme, 1998.;