Kar Vivad Samadhan Scheme invalidity follows concealment of re-credited payment and false material particulars in declaration.

A declaration under the Kar Vivad Samadhan Scheme, 1998 was not valid where the amount claimed as paid through the Cenvat account had been re-credited into the books before the application, because the declaration then contained a false material particular. Paragraph 93(1) of the Finance (No. 2) Act, 1998 treats such a declaration as never having been made and revives the underlying proceedings. On the stated facts, the statutory conditions for availing the scheme were not satisfied, so rejection of the declaration was justified and no relief was available under the scheme.

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Issues: Whether the appellant's declaration under the Kar Vivad Samadhan Scheme, 1998 was valid and entitled to relief, or whether concealment of a re-credited amount and non-compliance with the scheme conditions justified rejection of the declaration.

Analysis: The declaration was filed for settlement under the scheme, but the amount stated to have been paid through the Cenvat account was later found to have been re-credited into the books shortly before filing the application. The concealed re-credit meant that the amount claimed as paid had not, in substance, been paid as represented in the declaration. Under paragraph 93(1) of the Finance (No. 2) Act, 1998, a declaration containing a false material particular is treated as never having been made, and the underlying proceedings stand revived. On the facts, the statutory conditions for availing the scheme were not satisfied.

Conclusion: The rejection of the declaration was /justified and the appellant was not entitled to benefit under the scheme.

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