Kar Vivad Samadhan Scheme settlement bars re-opening of a settled dispute in departmental appeal.

A dispute settled under the Kar Vivad Samadhan Scheme attains finality once the designated authority accepts the settlement under Section 90 of the Finance Act, 1988. Section 92 bars further appellate proceedings on the settled issue, so a departmental appeal cannot revive or re-adjudicate the same order-in-original. The appellate authority therefore lacks jurisdiction to proceed against a matter already covered by the statutory settlement, and any order reopening that settled dispute is unsustainable. The assessee's position based on the settlement was upheld.

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Issues: Whether a dispute settled under the Kar Vivad Samadhan Scheme could be re-opened in a departmental appeal against the same order-in-original, and whether the appellate authority had jurisdiction to proceed after the settlement order.

Analysis: The dispute arising from the common order-in-original had been settled by the designated authority under the Kar Vivad Samadhan Scheme on payment of the amount determined under the settlement. Once such settlement was made under Section 90 of the Finance Act, 1988, Section 92 of the same Act barred further appellate proceedings on the covered issue. The subsequent departmental appeal, therefore, could not revive the settled controversy or confer authority on the appellate forum to re-adjudicate it.

Conclusion: The departmental appeal could not be entertained after settlement under the Kar Vivad Samadhan Scheme, and the impugned appellate order reopening the settled dispute was unsustainable.

Final Conclusion: The appeal succeeded, and the assessee's position based on the statutory settlement was upheld.

Ratio Decidendi: A dispute validly settled under the Kar Vivad Samadhan Scheme attains finality and cannot be re-opened or re-adjudicated in appellate proceedings by virtue of the statutory bar.

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