Bill of Entry endorsement may constitute a statutory demand, and pending writ proceedings can preserve relief under the scheme.

An endorsement on a Bill of Entry was treated as a demand for the statutory scheme, bringing Section 87 of Part IV of the Finance (No. 2) Act, 1988 into operation. The pending writ petition concerning the same demand meant the bar in Section 95(ii) did not defeat the petitioner's claim, and the provision was applied in the petitioner's favour. The court directed that, if the declared amount was paid within the stipulated time, the designated authority had to accept it, issue the required certificate, and refrain from further departmental proceedings or prosecution during the pendency of the writ; failure to pay would deprive the petitioner of that protection.

---

---

Issues: Whether the endorsement on the Bill of Entry constituted a demand attracting Section 87 of Part IV of the Finance (No. 2) Act, 1988, and whether the bar under Section 95(ii) of that Act applied in view of the pending writ petition.

Analysis: The endorsement on the Bill of Entry was treated as a demand. On that basis, Section 87 of Part IV of the Finance (No. 2) Act, 1988 was held to be attracted. The existence of a pending writ petition concerning the same demand was held to make the statutory bar inapplicable, because Section 95(ii) was viewed as operating in favour of the writ petitioner. The Court also directed that, on payment of the declared amount within the stipulated time, the designated authority should accept the sum, issue the necessary certificate, and no further departmental proceeding or prosecution should be taken during the pendency of the writ.

Conclusion: The petitioner's claim under the scheme was upheld in principle, subject to timely payment of the declared amount, and the bar under Section 95(ii) was held not to defeat the writ petition.

Final Conclusion: The order granted conditional protection to the assessee and recognised the applicability of the statutory scheme to the demand, while leaving the writ petition to fail if the stipulated payment was not made.

Ratio Decidendi: An endorsement on a Bill of Entry may itself constitute a demand for the purpose of the statutory scheme, and a pending writ challenging the same demand can place the petitioner within the benefit of the provision excluding the statutory bar.

---