Disputed fee settlement under Vivad se Vishwas permits reduced payment for contested penalty fees, requiring separate resolution where tax is also disputed. If an appeal has been filed against a fee imposed under the income tax penalty provisions, the appellant may file a declaration under the Vivad se Vishwas mechanism and pay the reduced proportion of the disputed fee prescribed by the scheme. Settlement of a disputed tax for the same year does not extinguish a separately contested fee; the fee must be settled through a separate declaration and payment under the scheme.