Kar Vivad Samadhan Scheme immunity bars later confiscation, redemption fine, and recovery on the same notice.

Settlement under the Kar Vivad Samadhan Scheme, 1998, together with immunity granted on payment of the amount determined by the designated authority, prevents further action on the same show cause notice. On that basis, a later confiscation order, redemption fine, and recovery measures against a bank guarantee for goods already released and exported could not be sustained. The stated principle is that once the dispute is settled under the scheme, the subsequent order imposing fine and penalty does not survive.

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Issues: Whether, after the appellants obtained satisfaction and immunity under the Kar Vivad Samadhan Scheme, 1998, the Commissioner could still proceed with confiscation, redemption fine, and consequential recovery measures in relation to the same show cause notice.

Analysis: The appellants had settled the duty liability under the scheme and were granted immunity on payment of the amount determined by the designated authority. The later order proceeded to confiscate goods that had already been released and exported, and to impose redemption fine and proceed against the bank guarantee. The tribunal followed its earlier view that once settlement under the scheme is obtained, the subsequent order imposing fine and penalty does not survive.

Conclusion: The confiscation order and the consequential fine and recovery directions could not be sustained.

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