Statutory deemed withdrawal under settlement scheme made pending revision incapable of continuation after payment order.

Under the Kar Vivad Samadhan Scheme, 1998, once the designated authority determined the amount payable on a declaration and passed the payment order, the deeming provision in Section 90(4) operated to treat any pending appeal, reference or reply relating to the same tax arrear as withdrawn. That statutory withdrawal extinguished the declarant's earlier remedy, so a revision application already pending before the Government of India could not continue. The revision was therefore rightly treated as withdrawn, and the challenge to its dismissal failed.

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Issues: Whether, after a declaration under the Kar Vivad Samadhan Scheme, 1998 and an order determining the amount payable, a pending revision application stood deemed to have been withdrawn under the Scheme.

Analysis: The Scheme required the designated authority to determine the sum payable on the declaration and, by virtue of the deeming provision in Section 90(4), any appeal, reference or reply already filed in relation to the tax arrear was to be treated as withdrawn on the date the payment order under Section 90(2) was passed. The effect of the provision was that once the declarant invoked the Scheme and an order for payment was made, the earlier remedies concerning the same tax arrear ceased to survive and were statutorily withdrawn. In these circumstances, the revision pending before the Government of India could not continue.

Conclusion: The revision application was rightly treated as withdrawn, and the challenge to its dismissal failed.

Ratio Decidendi: Where a settlement scheme contains a deeming provision that pending appeals or revisions shall stand withdrawn upon the passing of the payment order, the earlier proceedings abate automatically and cannot be pursued further.

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