Finality of Vivad Se Vishwas settlement bars reopening once certificate is issued and payment is made.

Once a declaration under the Direct Tax Vivad Se Vishwas Act, 2020 has resulted in issuance of the statutory certificate and payment of the determined amount, the designated authority becomes functus officio. The settlement attains finality for the matters covered, and the authority has no implied power to reopen it by issuing a fresh Form No. 3 or otherwise modifying the concluded settlement. Any such fresh certificate, issued without express statutory authorisation, is without authority of law and liable to be set aside.

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Issues: Whether the designated authority could reopen a concluded settlement under the Direct Tax Vivad Se Vishwas Act, 2020 by issuing a fresh Form No. 3 after a certificate had already been issued and payment made.

Analysis: The declaration under the Direct Tax Vivad Se Vishwas Act, 2020 was filed in respect of a tax arrear arising from a pending income-tax appeal. The statutory scheme provides for determination of the amount payable, issuance of a certificate under Section 5, withdrawal of the pending appeal upon such certificate, and finality of the matters covered by the certificate. Once the declarant pays the determined amount and a Form No. 5 certificate is issued, the designated authority has no statutory power to reopen the settled dispute. A fresh Form No. 3 purporting to modify the earlier settlement is therefore without authority of law.

Conclusion: The fresh certificate was impermissible and liable to be set aside.

Ratio Decidendi: Where a settlement under the Direct Tax Vivad Se Vishwas Act, 2020 has culminated in issuance of the statutory certificate and payment of the determined amount, the designated authority becomes functus officio and cannot reopen the concluded settlement in the absence of express statutory power.

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