Kar Vivad Samadhan Scheme compliance: later demanded payment made within a reasonable time cannot invalidate the declaration.

Where a declaration under the Kar Vivad Samadhan Scheme was supported by timely payment of the amount stated in the original certificate, a later demand for an additional sum could not invalidate compliance merely because it was paid after 30 days. The Court applied the scheme principle that, if no specific time limit is prescribed for payment of an amended demand, payment within a reasonable time satisfies the statutory requirement. On these facts, the petitioner's payment was not non-compliance, so rejection of the declaration was unsustainable and the petitioner was entitled to the certificate under Section 90(2) of the Finance (II) Act, 1998.

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Issues: Whether the petitioner's declaration under the Kar Vivad Samadhan Scheme could be rejected for delayed payment of the additional amount demanded after issuance of the certificate of intimation under Section 90(1) of the Finance (II) Act, 1998.

Analysis: The petitioner had complied with the amount stated in the original certificate and had made payment within the stipulated time. The further demand was made later, and the Court applied the principle that where the scheme does not prescribe a specific time limit for payment under the amended demand, payment made beyond 30 days but within a reasonable time satisfies the scheme requirements. On the facts, the petitioner's payment could not be treated as non-compliance so as to invalidate the declaration.

Conclusion: The rejection of the declaration was unsustainable. The petitioner was entitled to the certificate under Section 90(2) of the Finance (II) Act, 1998.

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