Final tax settlement under Kar Vivad Samadhan Scheme bars a pending revenue appeal from proceeding on settled issues.

Once liability is finally determined under the Kar Vivad Samadhan Scheme, 1998, and the amount payable is accepted under Section 90 as full and final settlement of tax arrears, the settlement becomes conclusive. Section 92 then bars the appellate forum from continuing with a pending appeal on issues covered by the declaration and the Section 90 order. In the absence of any shown false declaration or statutory revival of proceedings, the Revenue's appeal could not proceed on merits after the completed settlement, and the assessee obtained the benefit of final closure.

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Issues: (i) Whether, after the designated authority determined and accepted the assessee's liability under the Kar Vivad Samadhan Scheme, 1998, the Revenue's pending appeal could still be proceeded with on merits.

Issue (i): Whether, after the designated authority determined and accepted the assessee's liability under the Kar Vivad Samadhan Scheme, 1998, the Revenue's pending appeal could still be proceeded with on merits.

Analysis: Once the designated authority passes an order under Section 90 determining the amount payable towards full and final settlement of tax arrears, that determination is conclusive. Section 92 bars the appellate authority from proceeding with issues covered by the declaration and the order under Section 90. On the facts, the Revenue's appeal was pending, but the final determination under the Scheme had already been made and no case of false declaration or revival of proceedings was shown. The omission, if any, to include the issue in the declaration could not defeat the effect of the completed statutory settlement.

Conclusion: The Revenue's appeal could not be continued on merits after the Section 90 determination, and the assessee succeeded on the issue.

Final Conclusion: The statutory settlement brought the tax arrears to a conclusive end, and the pending departmental appeal did not survive for further adjudication.

Ratio Decidendi: Once a declarant's liability is finally determined under the Kar Vivad Samadhan Scheme and the amount is settled under Section 90, the appellate forum cannot proceed with a pending appeal on the settled tax arrears, absent any statutory revival of proceedings.

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