SHARDA SYNTHETICS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Having regard to the nature of order which we propose to pass, it is not necessary to traverse through the facts in detail. Suffice it is to mention that there was a liability of tax in the sum of Rs. 35,44,614.55/- in respect of which the appellant had furnished the Bank Guarantee as well. There were various litigations pending between the parties and the appellant had also filed civil suit seeking restraint orders against the respondent-Union of India from encashing the Bank Guarantee. At this time, the Kar Vivadh Samadhan Scheme, 1998 (KVSS) scheme was introduced by the Government which entitled the defaulters to pay 50 per cent of the demand and settle their tax disputes.

(2.) The appellant applied under the said Scheme but this application was rejected on the ground that the provisions of this scheme did not apply inasmuch as no show cause notice was issued to the appellant which was pending at that time.

(3.) The writ petition filed by the appellant has also been dismissed by the impugned order.