Case Note & Summary
The petitioner, The Bombay Dyeing & Manufacturing Co. Ltd., filed a writ petition challenging the legality and validity of orders passed by Respondent No.2 determining the amount of tax payable pursuant to a declaration filed under the Kar Vivadh Samadhan Scheme, 1998 (KVSS), introduced by the Finance (No.2) Act, 1998. The petitioner specifically challenged the Certificate of tax payable issued by the Commissioner. The court examined the provisions of Section 90(2) of the Finance Act, which requires the designated authority to issue a certificate specifying the amount payable after verifying the declaration. The court found that the impugned certificate did not comply with the mandatory requirements of the section, as it lacked proper reasoning and did not reflect a proper determination. Consequently, the court allowed the writ petition and set aside the certificate, directing the respondent to re-determine the tax payable in accordance with law. The judgment was delivered by a Division Bench of the Bombay High Court on 14th July 2023.
Headnote
A) Taxation - Kar Vivadh Samadhan Scheme - Certificate of Tax Payable - Section 90(2) of Finance (No.2) Act, 1998 - The petitioner challenged the certificate determining tax payable under KVSS. The court held that the certificate must strictly comply with the statutory requirements of Section 90(2), which mandates a speaking order with reasons. The impugned certificate was set aside for non-compliance. (Paras 1-2)
Issue of Consideration
Whether the Certificate of tax payable issued by the Commissioner under the Kar Vivadh Samadhan Scheme, 1998, is valid and in accordance with Section 90(2) of the Finance (No.2) Act, 1998.
Final Decision
The writ petition was allowed. The impugned Certificate of tax payable was set aside. The respondent was directed to re-determine the tax payable in accordance with law.
Law Points
- Interpretation of Section 90(2) of Finance (No.2) Act
- 1998
- Kar Vivadh Samadhan Scheme
- Tax determination
- Certificate of tax payable
- Mandatory statutory requirements
