Kar Vivad Samadhan Scheme Rules, 1998


[1998] 30 CLA (St.) 
Kar Vivad Samadhan Scheme Rules, 1998
SO 728(E) dated 27th August, 1998 issued by the Central Board of Direct Taxes
In exercise of the power conferred by sub-sections (1) and (2) of section 98 of the 
Finance (No. 2) Act, 1998, (21 of 1998), the Central Government hereby makes the following 
rules, namely :

Short title and commencement.

1. (1) These rules may be called the Kar Vivad Samadhan Scheme Rules, 1998.
   (2) They shall come into force on the 1st day of September, 1998.
       Definitions.
2. In these rules, unless the context otherwise requires, -
	(a) "Scheme" means the Kar Vivad Samadhan Scheme, 1998, specified under Chapter IV in the Finance (No.2) Act,1998 (21 of 1998) ;
	(b) "section" means section of the Finance (No. 2) Act, 1998 ;
	(c) "Form" means the Forms annexed to these rules ;
	(d) all other words and expressions used in these rules but not defined in these rules and defined in the Scheme under Chapter
          IV of the Finance (No. 2) Act, 1998 (21 of 1998), shall have the same meanings respectively assigned to them in that
          Scheme.Form of declaration under section 89 and manner of verification of such declaration in respect of tax arrear and
          the amount payable.

3. (1) The declaration under section 88 of the Scheme shall be made, -
	(a) in Form 1A in respect of tax arrear and the amount payable under direct tax enactment ;
	(b) in Form 1B in respect of tax arrear and the amount payable under indirect tax enactment.
   (2) The declaration under section 88 shall be verified in the manner
       indicated therein and shall be signed by the person making such
       delaration or by any person competent to act on his behalf under
       direct tax enactment or indirect tax enactment, as the case may
       be.
   (3) The declaration under sub-rule (1) shall be furnished in        
       duplicate to the designated authority.
   (4) The designated authority on receipt of declaration shall issue a     
       receipt in acknowledgement thereof.

Form of certificate under sub-section (1) of section 90.

4. The certificate under sub-section (1) of section 90 of the Scheme
     shall be,

	(a) in Form 2A setting forth therein the particulars of the tax 
          arrear and the sum payable under direct tax enactment after
          determination towards full and final settlement of tax arrears
          under that enactment;
	(b) in Form 2B setting forth therein the particulars of the tax  
          arrear and the sum payable under indirect tax enactment after 
          determination towards full and final settlement of tax arrears
          under that enactment:
    Provided that no payments of the "sum payable" shall be made by way
    of adjustment in an account in Form RG 23A Part II of RG 23C Part  
    II, as the case may be, of the Central Excise Rules, 1944.

    Form of certificate under sub-section (2) of section 90 read with 
    section 91 of the Scheme.
5. The certificate under sub-section (2) of section 90 of the Scheme  
   stating full and final settlement of tax arrears shall be -

	(a) in Form 3, where no writ petition, reference or appeal before 
          any High Court or the Supreme Court has been filed by the 
          declarant against  any order in respect of the tax arrears  
          contained in the declaration ;
	(b) in Form 4, where the declarant had filed a writ petition,  
          reference or appeal before any High Court or the Supreme Court 
          against any order in respect of the tax arrears and such writ 
          petition, reference or appeal had been withdrawn and the 
          declarant has furnished proof of such withdrawal in accordance 
          with the provisions contained in proviso to sub-section (4) of 
          section 90.
Publication of general or special order in section 96.

6. Any general or special order issued under sub-section (2) of section  
   96, shall be published in the Official Gazette if the Central    
   Government is of the opinion that it is necessary in public interest  
   so to do.

FORM OF DECLARATION UNDER SECTION 89 OF THE FINANCE (NO. 2) ACT, 1998 
IN RESPECT OF KAR VIVAD SAMADHAN SCHEME, 1998

KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 1a
[See rule 3(1)(a)]

To,
The Designated Authority
...........................................
...........................................
Sir/Madam,
I hereby make a declaration under section 88 of the Finance (No. 2) Act, 1998.
I give below the following particulars :
	1.	Name of the declarant (in block letters) 
		....................................................................
	2. 	Address : Office .........................................................
            .........................................................................
            .........................................................................
		.............................................. Telephone No. .............
		Residence ..........................................................
			............................................ Telephone No. ........
	3. 	Status of the declarant  	
		(State whether individual, Hindu undivided family, firm,     
             company, etc.)
	4. 	(a)	Name of the Income-tax Range/Circle/Ward where last assessed ............
		(b) 	Permanent Account Number (if allotted) 	
			General Index Register Number (if any) ..................................
	5. 	Details of tax arrears being offered for settlement:	

	Sl.No.	Particulars	Assessment year
			19 - 19	19 - 19	19 - 19	19 - 19
	a  	Assessed total income/wealth/taxable gift/chargeable                  
            interest/chargeable expenditure
	b  	Date of assessment order and the section under which        
            assessed.
	c  	Amount payable as per assessment order
	(i)	Tax
	(ii)	Interest
	(iii)	Total
	d  	Amount of penalty levied
	(i)	Under section
	(ii)	Amount
	(iii)	Date of order
	e  	Tax arrear outstanding as on  31st March, 1998
	(i) 	Tax
	(ii) 	Interest
	(iii) Penalty
	(iv) 	Total
	f  	Amount of tax arrear as on the date of making the 
            declaration under section 88
	(i) 	Tax
	(ii) 	Interest
	(iii) Penalty
	g  	Disputed income/wealth/value of gift/chargeable  
            interest/chargeable expenditure relating to disputed tax.-
	(a) 	determined on the basis of search/requisition under section 
            132/132A  of Income-tax Act or 37A or 37B of  Wealth-tax   
            Act.
	(b) 	cases not covered  in (a) above.
       h  	Amount payable under the Scheme where tax arrears relate to -
	(i) 	Tax, penalty and interest
	(ii) 	Only penalty and interest
	(iii)	Total
	i  	Details of pendency  of appeal/revision/reference/writ on   
            the date of declaration -
	(i) 	Appeal/reference/revision/writ petition number
	(ii) 	Date of filing 
	(iii) Authority or court

VERIFICATION
I .................................................................... 
(name in block letters) son/daughter/ of 
Shri .................................................................... 
solemnly declare that to the best of my knowledge and belief, -

	(a) 	the information given in this declaration, statements and    
            annexures accompanying it is correct and complete and amount    
            of tax arrears and other particulars shown therein are truly      
            stated and related to the previous years relevant to the        
            assessment years indicated in this declaration;
	(b) 	I am not disqualified in any manner from making a        
            declaration under the Scheme with reference to the      
            provisions of section 95 of Finance (No. 2) Act, 1998.

I further declare that I am making this declaration in my capacity as 
.................................................. [(designation) 
(please specify if you are making a declaration on behalf of declarant)] and that 

I am competent to make this declaration and verify it.

Place ...................	.....................................
Date .....................	Name and signature of the declarant 

Instructions for filling the form

	1. 	This Form should be submitted to the Commissioner of Income-
            tax notified as designated authority under section 87(b)(i)  
            of the Finance (No. 2) Act, 1998.
	2. 	Separate Form may be used for each direct tax enactment,  
            more sheets may be used wherever necessary to give complete 
            details.
	3. 	In case of variation between the amounts mentioned in column
            5(c) and 5(d) and those in column 5(e), please attach     
            necessary details separately.
	4. 	Attach necessary details in respect of variation between                                     
            column 5(e) and column 5(f).
	5. 	The demand relating to block assessment should be indicated      
            under separate columns.
	6. 	Delete whichever is not applicable.
	7. 	No column shall be left blank. Wherever the entry is not  
            relevant the column shall be filled in as 'Not Applicable'.
	8. 	Any other relevant information may be briefly indicated in a             
            separate sheet, if required.

FORM OF DECLARATION UNDER SECTION 89 OF THE FINANCE (NO.2) ACT, 1998 
IN RESPECT OF KAR VIVAD SAMADHAN SCHEME, 1998

KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 1B
[See rule 3(1)(b)]

To,

The Designated Authority
............................................
............................................

Sir/Madam,

I hereby make a declaration under section 88 of the Finance (No. 2) Act, 1998.
	1. 	Name of the declarant (in block letters) .......................................
	2. 	Address : Office ...............................................................
		................................................................................
		.................................................................... 
            Telephone No. ......................................
		Factory address ..................................................................

    	(if dispute relates to excisable goods)
		.................................................................................
		.................................................................... 
            Telephone No. ......................................
	3. 	Status of the declarant .........................................................
		(State whether manufacturer, dealer, importer, exporter, 
            individual company, etc.)
	4.	(a) 	If a manufacturing unit, indicate Central Excise                   
                  Registration No. ...............
			If importer or exporter, indicate Importer or Exporter   
                  Code No. .....................
		(b) 	Name of Range/Division/Commissionerate/Custom House      
                  where assessed or from where a show cause/demand       
                  notice issued in relation to the case for which tax         
                  arrears are proposed to be settled.



VERIFICATION

I, ..................................................................... 
(name in block letters) son/daughter/of Shri ............................................ 
solemnly declare that to the best of my knowledge and belief, -

	(a) 	the information given in this declaration and statements and    
            annexures accompanying it is correct and complete and amount           
            of tax arrears and other particulars shown therein are truly       
            stated ;
	(b) 	I am not disqualified in any manner from making a         
            declaration under the Scheme with reference to the         
            provisions of section 95 of Finance (No. 2) Act, 1998.
            I further declare that I am making this declaration in my        
            capacity as ........... [(designation) (please specify if          
            you are making a declaration on behalf of 
            declarant)] and that I am competent to make this declaration       
            and verify it.

Place ....................................	.......................................
Date ....................................	Name and signature of the declarant

Instructions for filling the Form

	1. 	This Form should be submitted to the Commissioner of Customs 
            or the Commissiner of Central Excise notified as designated   
            authority under section 87(b)(ii) of the Finance (No. 2)           
            Act, 1998.
	2. 	Use separate Form for each indirect tax enactment and for   
            each case. More sheets may be used wherever necessary to       
            give details.
	3. 	No column shall be left blank. Wherever the entry is not    
            relevant the column shall be filled in as 'Not Applicable'.
	4. 	In column 3, the stage [adjudication or appeal with         
            Commissioner (Appeals) or appeal with Customs, Excise and     
            Gold Control Appellate Tribunal or revision application 
            before the Central Government or reference application or  
            writ petition in a High Court or civil appeal or special    
            leave petition in the Supreme Court] of pendency on the date   
            of making declaration should be clearly indicated and      
            relevant documentary evidence shall be enclosed.
	5. 	In column 4, the amount of tax arrear will be with reference   
            to the pendency status of the case as declared under column                         3.
	6. 	Under column 5 indicate all amounts already paid voluntarily    
            or under protest or any deposits made pending appeals or in     
            pursuance of court order in the case.
	7. 	Any other information relevant to the case may be briefly     
            indicated under column 10.

FORM OF CERTIFICATE OF INTIMATION UNDER SECTION 90(1) OF THE FINANCE (NO.2) ACT, 
1998 IN RESPECT OF  KAR VIVAD SAMADHAN SCHEME, 1998 

KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 2A
[See rule 4(a)]

Whereas Mr./Mrs./M/s .................................... 
(hereinafter referred to as the declarant) has filed a declaration under section 
88 of the Finance (No. 2) Act, 1998 ;

And whereas the said declaration has been received on ............................. 
in the office of the designated authority.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 
90 of the Finance (No. 2) Act, 1998, the designated authority, after consideration 
of relevant material, hereby determines the following amount payable by the declarant 
towards full and final settlement of his/her/their tax arrears covered by the said 
declaration under the scheme :

	Sl. No.	Direct tax enactment	Assessment  year	Tax arrear	Amount payable



The declarant is hereby directed to make the payment of sum payable within thirty 
days from the date of this certificate.

Place ...................	..............................................

Date .....................	Name and signature and 	seal of Designated Authority

To
.............................................
.............................................
.............................................

FORM OF CERTIFICATE OF INTIMATION UNDER SECTION 90(1) OF THE FINANCE (NO. 2) ACT, 
1998 IN RESPECT OF  KAR VIVAD SAMADHAN SCHEME, 1998

KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 2B
[See rule 4(b)]

Whereas Mr./Mrs./M/s. ............................................. 
(hereinafter referred to as the declarant) has filed a declaration under section 88 
of the Finance (No. 2) Act, 1998;

and whereas the said declaration has been received on ......................... in the 
office of the designated authority.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of 
the Finance (No. 2) Act, 1998, the designated authority, after consideration of relevant
material, hereby determines the following amount payable by the declarant towards full 
and final settlement of his/her/their tax arrears covered by the said declaration under
the Scheme :

    	      Tax arrears	Amount of tax arrear 
       	Amount determined as payable	Remarks
		declared in Form 1B 	under section 88(f) of the 
		(In Rs.)	Finance (No. 2) Act, 1998 
			(In Rs.)
	(a) 	Duties/cesses
	(b) 	Other than 
		duties/ cesses.

The declarant is hereby directed to make payment of the sum payable within thirty days 
from the date of this certificate.

Place ...................	..............................................

Date .....................	Name and signature and

	seal of Designated Authority


FORM OF CERTIFICATE FOR FULL AND FINAL SETTLEMENT  OF TAX ARREARS 
UNDER SECTION 90(2) READ WITH SECTION 91 OF THE FINANCE (NO. 2) ACT, 1998 

IN RESPECT OF  KAR VIVAD SAMADHAN SCHEME, 1998
KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 3
[See rule 5(a)]

Whereas.............................................................................
(Name and address of the declarant)
(hereinafter referred to as declarant) had made a declaration under section 88 of 
the Finance (No. 2) Act, 1998 ;

And whereas the designated authority by order dated .................... determined 
the amount of ............................... rupees payable by the declarant in 
accordance with the provisions of the Scheme and granted a certificate setting forth 
therein the particulars of the tax arrears and the sum payable after such determination
towards  full and final settlement of tax arrears as per details given below ;
And whereas the declarant has paid ................... rupees being the sum determined
by the designated authority ; And whereas the declarant had declared in the declaration 
made under section 88 that no writ petition or appeal or reference before any High Court
or the Supreme Court against any order in respect of the tax arrears has been filed by such 
declarant ;
Now, therefore, in exercise of the powers conferred by sub-section (2) of section 90 read 
with section 91 of the Finance (No. 2) Act, 1998, the designated authority hereby issues 
this certificate to the said declarant -	(

a) 	certifying the receipt of payment from the declarant towards full and final 
      settlement of tax arrears determined in the order dated ............. on the 
      declaration made by the aforesaid declarant ;

(b) 	granting immunity, subject to the provision contained in the Scheme, from 
      instituting any proceeding for prosecution for any offence under ............... 
      (specify enactment) or from the imposition of penalty under said enactment, in 
      respect of matters covered in the aforesaid declaration made by the declarant.

Place ...................	..............................................
Date .....................	Name and signature and seal of Designated Authority

To

	(1)	The declarant
	(2)	Assessing/Adjudicating Officer
	(3)	Commissioner of Income-tax/Customs/Central Excise
	(4) 	Concerned appellant authorities/bodies

NB : Delete whatever is not applicable.

FORM OF CERTIFICATE FOR FULL AND FINAL SETTLEMENT OF  TAX ARREARS 
UNDER SECTION 90(2) READ WITH SECTION 91 OF THE FINANCE (NO. 2) ACT, 1998 
IN RESPECT OF  KAR VIVAD SAMADHAN SCHEME, 1998

KAR VIVAD SAMADHAN SCHEME RULES, 1998

Form 4
[See rule 5(b)]

Whereas............................................................................
(Name and address of the declarant)
(hereinafter referred to as declarant) had made a declaration under section 88 of the 
Finance (No. 2) Act, 1998 ;
And whereas the designated authority by order dated .................... determined 
the amount of ............................... rupees payable by the declarant in 
accordance with the provisions of the Scheme and granted a certificate setting forth 
therein the particulars of the tax arrears and the sum payable after such determination 
towards  full and final settlement of tax arrears as per details given below ;
And whereas the declarant has paid ................................................ 
rupees being the sum determined by the designated authority ;
And whereas the declarant had filed a writ petition/appeal/reference before .............
..........(mention the name of the High Court)  High Court or the Supreme Court against
any order in respect of the tax arrears ;
And whereas the declarant has withdrawn the said writ petition/appeal/reference before 
............................................... (mention the name of the High Court) High 
Court or the Supreme Court and furnished proof of such withdrawal in accordance with the 
provisions contained in the proviso to sub-section (4) of section 90 ;
Now, therefore, in exercise of the powers conferred by sub-section (2) of section 90 
read with section 91 of the Finance (No. 2) Act, 1998, the designated authority hereby 
issues this certificate to the said declarant -

	(a) 	certifying the receipt of payment from the declarant towards                            
            full and final settlement of tax arrears determined in the    
            dated ............. on the declaration made by the aforesaid 
            declarant ;
	(b) 	granting immunity, subject to the provision contained in the   
            Scheme, from instituting any proceeding for prosecution for       
            any offence under ............... (specify enactment) or       
            from the imposition of penalty under said enactment, in        
            respect of matters covered in the aforesaid declaration made    
            by the declarant.

Place ...................	..............................................
Date .....................	Name and signature and seal of Designated Authority

To

	(1)	The declarant
	(2)	Assessing/Adjudicating Officer
	(3)	Commissioner of Income-tax/Customs/Central Excise
	(4) 	Concerned Appellant authorities/bodies

	NB : Delete whatever is not applicable.