Kar Vivad Samadhan Scheme settlement bars reopening of the same notice for confiscation and penalty after immunity is granted.

Settlement of a dispute under the Kar Vivad Samadhan Scheme, followed by issuance of Form 3, was treated as final and as conferring immunity from further proceedings on the same show cause notice. Once the duty demand stood settled, the authority lacked jurisdiction to continue adjudication on that notice or to impose consequential confiscation of goods and plant and machinery, or penalty. Trade notices issued by the Board were also relied on as supporting the bar on reopening settled matters. The settled cause of action could not be revived for further adjudication or ancillary penal action.

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Issues: Whether, after settlement of the dispute under the Kar Vivad Samadhan Scheme and issuance of Form 3 granting immunity, further adjudication on the same show cause notice could continue, including confiscation of goods and plant and machinery and imposition of penalty.

Analysis: The settlement under the Scheme, followed by issuance of Form 3, was treated as bringing the dispute to an end and conferring immunity against further proceedings on the same cause of action. Once the duty demand stood settled in terms of the Scheme, the authority had no jurisdiction to continue adjudication on the same notice or to impose consequential confiscation and penalty. The Board's trade notices were also relied on as supporting the bar on further proceedings after settlement.

Conclusion: Further adjudication, confiscation and penalty proceedings on the settled show cause notice were impermissible and the assessee succeeded.

Ratio Decidendi: Where a dispute is finally settled under the Kar Vivad Samadhan Scheme and immunity is granted by issuance of the prescribed certificate, the same cause of action cannot be reopened for further adjudication, confiscation or penalty.

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