Kar Vivad Samadhan Scheme payment valid despite challan format, where tax was paid and received within time.

Payment under the Kar Vivad Samadhan Scheme was treated as valid where the tax was paid within time and received by the Department, because the scheme did not make use of a departmental challan form a condition precedent to compliance. An objection based only on the challan format was therefore held immaterial, and the payment was to be adjusted as valid under the scheme. The assessing authority was directed to proceed further and pass final orders.

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Issues: Whether payment of tax under the Kar Vivad Samadhan Scheme could be denied adjustment merely because the amount was deposited on a challan not issued by the Department.

Analysis: The scheme was held to require only that the assessee pay the tax within the prescribed time and that the Department receive the amount. It was found that the scheme did not make departmental issuance of a particular challan form a condition precedent for valid payment or adjustment. Since the tax had in fact been paid and received, the objection based solely on the challan format was held to be contrary to law.

Conclusion: The challan format was immaterial, and the tax payment was to be treated as valid compliance under the scheme. The petition succeeded and the assessing authority was directed to proceed further and pass final orders.

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