Pending appeal requirement under Kar Vivad Samadhan Scheme strictly limits settlement eligibility once appellate disposal occurs

Eligibility under the Kar Vivad Samadhan Scheme, 1998 depended on an actual pending appeal, reference, writ petition, or revision on the date of declaration. The word "pending" in Section 95(ii)(c) was given its ordinary meaning, so once the appellate order had been passed before the declaration, the matter was no longer pending merely because the order had not been received or the time for further appeal had not expired. The exclusion was construed strictly, and the declaration was therefore outside the scheme.

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Issues: Whether the declaration under the Kar Vivad Samadhan Scheme, 1998 was rightly rejected on the ground that, on the date of declaration, no appeal was admitted and pending within the meaning of Section 95(ii)(c) of the Finance (No. 2) Act, 1998.

Analysis: The scheme was held to be a recovery-oriented settlement scheme, and the exclusion in Section 95 had to be construed strictly. The word "pending" in Section 95(ii)(c) was given its ordinary meaning, namely a matter that is undecided and continues until disposal. Once the Commissioner (Appeals) had passed the order-in-appeal before the declaration was filed, the appeal could not be treated as pending merely because the petitioner had not yet received the order or because the period for further appeal had not expired. The authorities relied on the settled distinction between actual pendency and deemed or fictional pendency, and the cited Supreme Court decisions did not assist the petitioner on these facts.

Conclusion: The rejection of the declaration was in law and the challenge failed.

Final Conclusion: The writ petition was dismissed because the petitioner was not entitled to the scheme benefit in the absence of a pending appeal on the date of declaration.

Ratio Decidendi: For the Kar Vivad Samadhan Scheme, eligibility under the pendency clause depends on the actual existence of a pending appeal, reference, writ petition, or revision on the date of declaration; disposal of the appellate proceeding before that date excludes the declarant from the scheme.

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