Kar Vivad Samadhan Scheme withdrawal requires examination of the final certificate and payment compliance before denying a remedy.

Deeming withdrawal under the Kar Vivad Samadhan Scheme cannot be assumed without examining the Scheme certificate and compliance with the payment requirement. The Tribunal held that the appellate authority misconstrued Section 90(1) and the deeming effect under Section 90(4) of the Finance Act, 1998 by treating the appeal as already withdrawn without considering the final acceptance certificate. If the determined amount is not deposited, the declaration abates and the party must proceed with the appeal in accordance with law. The order was set aside and the matter remanded for fresh consideration after allowing production of the final certificate.

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Issues: Whether the appellate authority was right in treating the appeal as withdrawn under the Kar Vivad Samadhan Scheme and in declining to examine the matter afresh without the final certificate under the Scheme.

Analysis: The appellate authority proceeded on the footing that the order under Section 90(1) and the deeming consequence under Section 90(4) of the Finance Act, 1998 had already withdrawn the appeal. The Tribunal held that this was a misconstruction of the Scheme. The certificate produced by the appellant represented determination of liability, and compliance with the amount determined was necessary for the declaration to remain effective. If the amount was not deposited, the declaration would abate and the party would have to pursue the appeal in accordance with law. The Tribunal also noted that, without examination of the final acceptance certificate, the appellant would be left without an effective remedy.

Conclusion: The order in appeal was unsustainable and was set aside. The matter was remanded to the appellate authority to examine the issue afresh after giving the appellant an opportunity to produce the final certificate under the Scheme.

Final Conclusion: The appeal succeeded and the dispute was sent back for reconsideration on the basis of the Scheme documents.

Ratio Decidendi: Deeming withdrawal under the Kar Vivad Samadhan Scheme cannot be presumed where the Scheme certificate and compliance regarding payment require examination, and the authority must decide the matter on the basis of the final certificate before denying the assessee a remedy.

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