Finality of tax settlement under Kar Vivad Samadhan Scheme bars reopening and refund after voluntary acceptance.

A statutory settlement under the Kar Vivad Samadhan Scheme, 1998, once voluntarily invoked, accepted and implemented, attains finality and cannot ordinarily be reopened. The designated authority's computation under the Scheme was conclusive, the settled appeal could not continue, and refund of amounts paid pursuant to the declaration was expressly barred. On the facts stated, the assessee accepted the computed liability, paid without protest, obtained the settlement certificate, and secured withdrawal of the departmental appeal. In the absence of a statutory exception such as clerical or arithmetical error or a false declaration unknown to the Revenue, the completed settlement remained binding and the challenge and refund claim were not maintainable.

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Issues: Whether a settlement under the Kar Vivad Samadhan Scheme, 1998, once accepted and acted upon by the assessee, could later be reopened to challenge the tax computation and seek refund of the amount paid.

Analysis: The Scheme provided a voluntary mechanism for settlement of disputed tax liabilities. A declaration under the Scheme required the designated authority to determine the amount payable, and the statutory design made the resulting order conclusive. The Scheme also barred reopening of matters covered by the settlement, barred the appellate authority from proceeding with the settled appeal, and expressly prohibited refund of any amount paid pursuant to the declaration. The assessee had opted into the Scheme, accepted the computed amount, paid it without protest, obtained the settlement certificate, and thereby caused the departmental appeal to be withdrawn. In the absence of exceptional circumstances such as clerical or arithmetical error or false declaration unknown to the Revenue, the completed settlement could not be disturbed.

Conclusion: The challenge to the settlement and the claim for refund were not maintainable, and the determination under the Scheme remained binding.

Final Conclusion: The assessee having voluntarily entered the settlement scheme and accepted the computed liability, the dispute attained finality and no refund or further challenge could be entertained.

Ratio Decidendi: A statutory settlement under a voluntary tax dispute resolution scheme, once accepted and concluded in accordance with its terms, is final and cannot be reopened or refunded except where the statute itself permits limited correction or the settlement is tainted by an exceptional statutory infirmity.

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