Judgment:
1. This is a case where M/s Barak Ispat (P) Ltd., Silchar, had filed an application for availing the benefit of Kar Vivad Samadhan Scheme of 1998 and as per the certificate in from 2B issued under Rule 4 (b) of the Kar Vivad Samadhan Scheme (KVSS) Rules, 1998 by Commissioner of Central Excise, Shillong, the appellants were required to deposit an amount of Rs.38,734/- as a final settlement of the tax arrears of Rs.77,469/- as declared by the appellants in Form 1B with reference to show-cause notice No.V(15)14/Demand/SIL-II/97/816A dated 29.9.97. In the said certificate, the appellant was directed to make payment of the aforementioned amount within 30 days from the date of the certificate.
The certificate was issued on 5.2.99.The appellant had deposited the said amount through TR 6 Challan No.014/98-99 dated 27.2.99. Instead of intimating the fact of the deposit of the said amount to the Commissioner, the appellant has made entry to that effect in PLA at Sl.No.025/27.2.99 showing it as a credit in the personal ladger account towards the payment of the amount specified in the Commissioner's certificate dated 5.2.99 in settlement of tax arrears under the KVSS.Information about it was furnished in the RT 12 return for February, 1999. The appellants had received a letter C.NO.IV-16/80/KVSS/99-8213-18 dated 5.5.2000 (despatched on 8.5.2000) from the Commissioner stating that the appellants failed to make the payment of the settlement amount within stipulated period and, therefore, the appellant was ineligible to avail the benefit of this Scheme. The Commissioner, therefore, rejected the declaration of the appellants under Section 89 of the Finance (No.2) Act, 1998 with respect to the said show-cause notice involving the tax arrears for an amount of Rs.77,469/-. On receipt of the said letter, the appellant has represented to the Commissioner on 16.5.2000 stating tht he had already deposited an amount of Rs.38,734/- and duly reflected the same in the RT-12 return for the month of February, 1999. In the said representation, he mentioned that A.G.Audit, Guwahati, duly test-checked the said PLA. As there was no response from the Department, another representation was sent to the Commissioner on 10.7.2000 specifically reguesting the Commissioner to issue the final order the settlement of dues under the KVSS. It was followed by another letter dated 25.7.2000 making a prayer to the Commissioner to issue the necessary orders of final settlement of tax arrears under the KVSS with reference to the aforementioned show-cause notice. Since these letters did not evoke any response from the Commissioner, the present appeal has been filed before the Tribunal.
2. Shri K.K.Bhattachary, Id.Consultant appearing for the appellants, submits that the appellant has discharged his liability in full in settlement of tax arrears as ordered by the Commissioner vide his certificate in Form. He, however, fairly concedes that the appellants did not inform the Commissioner about the fact of payment within stipulated period. He argues that this should not stand in the way of final settlement of tax arrears under the said Scheme when the fact of the payment has been known to the Commissioner through several letters.
He, therefore, prays for setting aside the said order and remand the matter to the Commissioner for verification of the factual position with regard to actual payment of the tax arrears and issue of the certificate for final settlement of tax arrears if the deposit actually found to be made as directed by the Commissioner.
3. Shri R.K.Roy, Id.JDR appearing for the Revenue, has no objection if the matter is sent back to the Commissioner for issue of the final certificate after duly verification of the actual payment of the amount as directed to be paid by the Commissioner in Form 2B.4. After hearing both sides, I am of the view that the matter needs t go back to the Commissioner for issue of final settlement order under the KVSS after proper verification of the actual payment as claimed by the appellants that he made the payment within the stipulated period of 30 days. Accordingly, I set aside the impugned order and remand the matter to the Commissioner for doing the needful as indicated above.