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2008 (8) TMI 791 - HC - Central ExciseWhether the Designated Authority under the Kar Vivad Samadhan Scheme, 1998, as contained in the Finance Act, 1998, can include contingent sales tax liability to the State Government, in computing tax arrears in relation to an indirect tax enactment, as defined in Section 87(j) of the Finance Act, 1998? Held that:- The Kar Vivad Samadhan Scheme does not cover any sales tax dues payable to the State Government. If the certificate which included contingent tax liability were to be treated as sacrosanct and left untouched, the assessee might contest claims towards sales tax by reference to the certificate and thereby avoid sales tax liabilities not covered by the Kar Vivad Samadhan Scheme. This cannot be permitted. The writ petition thus succeeds. The impugned order is set aside and quashed.The designated authority is directed to amend the certificate by excluding the amount which represents contingent sales tax liability in respect of the goods in question. Such amendment shall be carried out within six weeks from the date of communication of this order.The petitioner shall be entitled to refund of 50% of the sales tax amount. The refundable amount may, however, be treated as advance tax and adjusted against future dues of the petitioner to the Excise Authorities.
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