2009 (2) TMI 107

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....terest were due for payment. While demands were pending, the Central Government introduced a scheme called the "Kar Vivad Samadhan Scheme, 1998" by the Finance (No. 2) Act of 1998 with a view to provide a chance to the assessee to pay off the arrears at a compounded rate with substantial concessions. It is contended that under the said scheme an assessee who is in arrears of tax, i.e., principal part of tax and interest and penally as on March 31, 1998, would be able to settle the arrears by paying 35 per cent. of the tax only, to wipe off the whole liability under the heads of tax, interest and penalty. Similarly, an assessee who is in arrears of interest or penalty as on March 31, 1998, can settle the liability by paying 50 per cent. of s....

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....he date of receipt of the declaration under section 88, the designated authority shall, by order, determine the amount payable by the declarant in accordance with the provisions of this Scheme and grant a certificate in such form as may be prescribed to the declarant setting forth therein the particulars of the tax arrear and the sum payable after such determination towards full and final settlement of tax arrears: Provided that where any material particular furnished in the declaration is found to be false by the designated authority at any stage, it shall be presumed as if the declaration was never made and all the consequences under the direct tax enactment or indirect tax enactment under which the proceedings against the declarant ar....