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Section 95 of the Kar Vivad Samadhan Scheme, 1998 - Settlement of tax disputes - Scheme not to apply in certain cases (Constitutional validity) - Assessment years 1993-94 to 1995-96 - Finance Act, 1998 had introduced Kar Vivad Samadhan Scheme [KVSS] for settlement of tax disputes pending as on 1-9-1998 - Section 95(iii) of KVSS excluded various classes of persons from benefit of scheme - Assessee filed three declarations under KVSS to Designated Authority seeking to settle his disputes pending before authorities for assessment years 1993-94 to 1995-96 - Designated Authority having noticed that prosecution for offence of cheating under Chapter XVII of Indian Penal Code had been launched against assessee did not accept declarations holding that same were barred by virtue of provisions of section 95(iii) - Assessee filed writ petition challenging constitutional validity of section 95(iii) - He contended, inter alia, that ousting a person from benefit of KVSS in respect of whom a complaint had been filed in a Criminal Court alleging offences under Chapters IX and XVII of Indian Penal Code was arbitrary - Whether in view of objective/purpose of KVSS, assessee against whom prosecution for offence of cheating under Chapter XVII of Indian Penal Code had been launched and his class of persons had been rightly excluded from benefit of scheme - Held, yes [Para 23][In favour of revenue] FACTS â–  The Finance Act, 1998 had introduced the Kar Vivad Samadhan Scheme, 1998 [KVSS] with effect from 1-9-1998 providing for settlement of tax disputes pending as on 1-9-1998. Under the KVSS, the tax dispute, inter alia, to be settled in respect of direct tax was the amount of tax, penalty or interest determined on or before 31-3-1998 and remaining unpaid as on the date of the filing a declaration in the prescribed form. The declaration in the prescribed form had to be filed by a person invoking the benefit of KVSS on or after 1-9-1998 but before 31-12-1998. â–  The scheme provided that on the date of filing of the declaration, there must be a pending dispute with regard to the tax arrears which is being sought to be settled under the KVSS. In case the Designated Authority…