Referring to `Kar Vivad Samadhan Scheme', the excise commissioner, has said the person will be required to file a declaration with the department in a prescribed form. Within 60 days he will be intimated of the amount payable by him under the scheme towards full and final settlement of the case. He will have to pay the sum as determined and communicated within 30 days of the issue of certificate of intimation, he said.

The fact of payment along with the proof thereof will have to be submitted to the commissioner, who after satisfying himself about the payment and laid down requirement, will issue an appropriate certificate accepting the declaration and providing for the waiver of the balance tax interest, fine or penalty as per the scheme.

According to the commissioner, the settlement amount, which will be payable is as per the following provisions: in cases involving arrears of duty -- whether or not it involves arrears of fine, penalties or interest -- the applicant has to pay only 50 per cent of the amount of duties due or payable and in arrears as on the date of application. There will be complete waiver from payment of fine, penalty and interest involved, if any, apart from waiver of the balance duty due or payment.

In cases, which do not involve arrears of duty but comprises penalty, fine or interest, the applicant will have to pay only 50 per cent of the amount of such penalty, fine or interest due, on the date of making declaration. The balance amount of penalty, fine or interest due to payable will be waived.

The commissioner pointed out that cases, where show cause notice/demand notice are issued on or after April 1, 1998 are not covered under the scheme. He disclosed that a special cell had been set up in the commissionerate to deal with persons intending to avail facility under the scheme.

The commissioner clarified that the scheme was not applicable in the following cases:
a) cases involving demand relating to erroneous refund.
b) where show-cause notice or demand notice under any indirect tax enactment has not been issued.
c) where no appeal or reference or writ petition is admitted and pending before any appellate authority or High Court or the Supreme Court or no application is pending before the central government on the date of declaration.
d) where prosecution for any offence punishable under indirect tax enactment has been instituted on or before the date of making of the declaration.
e) to any persons in respect of whom prosecution for any offence punishable under Indian Penal Code, Foreign Exchange Regulation Act, Narcotic Drug and Psychotropic Substance Act, Terrorists and Disruptive Activities Act and Prevention of Corruption Act or for the purpose of enforcement of any civil liability has been instituted on or before the filing of the declaration or such person has been convicted of any such offence.
f) to any person in respect of whom an order of detention has been made under the conservation of the Foreign Exchange and Prevention of Smuggling Activities Act, 1974.