Kar Vivad Samadhan Scheme benefit denied where final tax liability had attained finality and no bona fide dispute remained.

Benefit under the Kar Vivad Samadhan Scheme, 1998 was unavailable where the duty liability had already attained finality through the appellate process and the Supreme Court, and the later writ petition did not preserve a bona fide pending dispute. The court treated the writ as an attempt to project artificial pendency after final adjudication, especially because the earlier proceedings were not fully disclosed and the merits or quantum of duty were no longer genuinely in issue. On that basis, the challenge to denial of Scheme benefits failed, and the assessee could not invoke the Scheme.

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Issues: Whether the petitioners were entitled to the benefit of the Kar Vivad Samadhan Scheme, 1998 when the duty demand had already attained finality and the writ petitions were filed to project a pending dispute.

Analysis: The benefit of the Scheme was available only where the tax arrears were genuinely in dispute and the proceeding had bona fide pendency. On the facts, the duty demand had been confirmed through the appellate chain and by the Supreme Court, and the later writ petition challenging the recovery notice did not keep the merits or quantum of duty demand in dispute. A writ filed after final determination, without full disclosure of the earlier proceedings, could not be treated as a legitimate pending dispute for availing the Scheme.

Conclusion: The petitioners were not entitled to the benefit of the Kar Vivad Samadhan Scheme, 1998, and the claim failed against the assessee.

Final Conclusion: The writ petitions were held to be an impermissible attempt to create artificial pendency after final adjudication of the duty liability, and the challenge to denial of Scheme benefits failed.

Ratio Decidendi: Benefit under the Kar Vivad Samadhan Scheme, 1998 cannot be claimed where the tax liability has attained finality and the later proceeding is instituted only to create an artificial or non-bona fide pendency.

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