Kar Vivad Samadhan Scheme settlement can bar further confiscation and penalty proceedings on the same seized-goods notice

The Kar Vivad Samadhan Scheme settlement certificate, issued for the same show cause notice, was treated as covering the dispute in full even though the goods had been seized. The scheme was read as a mechanism for settling pending disputes at the adjudication or appeal stage, and no exclusion was identified for a seizure-related matter. Once the competent authority granted immunity in relation to that notice, the matter stood settled in toto, and the adjudicating authority could not proceed further on confiscation or penalty on the same notice.

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Issues: Whether the settlement and immunity granted under the Kar Vivad Samadhan Scheme covered the show cause notice relating to seized goods and barred further confiscation and penalty proceedings.

Analysis: The settlement certificate was issued with reference to the very show cause notice in question. The scheme was understood as a mechanism for settling pending disputes at the adjudication or appeal stage, and there was no indication that a case involving seizure was excluded merely because the goods had been seized. Once the competent authority had granted immunity in relation to the notice, the matter stood settled in toto and no further action could be taken on the same notice by the adjudicating authority.

Conclusion: The settlement under the scheme covered the seized goods and the related show cause notice, and further confiscation or penalty proceedings were not warranted.

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