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2022 (12) TMI 1408 - AT - Central ExciseLevy of penalty - payment of redemption fine missed out - dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 already settled - present Appellant is the Director of the company - HELD THAT - On perusal of the Order-in-Original it is noticed that negligence in general is attributed to the conduct of the present Appellant. This being the allegations and having regard to the fact that the present Appellant s declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 having been given a lawful consideration, he would have paid nil penalty in view of the relief available to him under Section 124(i)(b) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules 2019, we are of the considered view that even after failure on the part of the Appellant to avail the benefits of the scheme in its totality in view of Board Circular No. 1071/4/2019- CX.8 dated 27.08.2019 and consistent decisions of this Tribunal, two of which are P.B. VYAS VERSUS COMMR. OF CENTRAL EXCISE, MUMBAI-III 2021 (3) TMI 1305 - CESTAT MUMBAI and M/S EXOTICA HOUSING PVT. LIMITED VERSUS COMMISSIONER, CENTRAL EXCISE, CUSTOMS, GOODS AND SERVICE TAX, NEW DELHI. 2020 (2) TMI 1697 - CESTAT NEW DELHI . The order of penalty imposed by the Commissioner (Appeals) in respect of the present Appellant is set aside - Appeal allowed.
Issues:
1. Settlement under Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019. 2. Imposition of penalty post-settlement. 3. Applicability of redemption fine. 4. Negligence attributed to the present Appellant. 5. Consideration of relief under Section 124(i)(b) of the Scheme. 6. Board Circular and Tribunal decisions affecting the penalty imposition. Settlement under Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019: The main Appellant settled the dispute under the Sabka Vishwas Scheme and obtained Form No. SVLDRS-4 with nil tax liability. The appeal filed by the main Appellant was dismissed as deemed withdrawn by the Tribunal. The present Appellant, as the Director, was involved in the settlement process. Imposition of penalty post-settlement: The Appellant argued that the allegations against the present Appellant were general and lacked direct involvement in the alleged act, absolving him from penalty liability post-settlement under the Scheme. The Respondent issued Form No. SVLDRS-3 seeking a redemption fine, which the Appellant contended was not imposable under the Scheme, citing a judgment by the High Court of Gujrat affirmed by the Supreme Court. Applicability of redemption fine: The Respondent's Authorized Representative reiterated the Commissioner's findings and left the decision to the Bench, considering the settlement under the Sabka Vishwas Scheme. The Bench noted negligence attributed to the present Appellant in the Order-in-Original and considered the lawful declaration under the Scheme, which entitled the Appellant to nil penalty under Section 124(i)(b) of the Scheme. Negligence attributed to the present Appellant: Despite the negligence attributed to the present Appellant, the Tribunal, referencing a Board Circular and consistent Tribunal decisions, allowed the appeal and set aside the penalty imposed by the Commissioner (Appeals) concerning the present Appellant. The Tribunal considered the relief available under the Scheme and the Appellant's failure to avail benefits entirely, in line with the Circular and previous Tribunal decisions cited by the Appellant's Counsel. This detailed analysis of the judgment addresses the issues surrounding the settlement under the Sabka Vishwas Scheme, imposition of penalty post-settlement, applicability of redemption fine, negligence attributed to the present Appellant, consideration of relief under the Scheme, and the impact of Board Circular and Tribunal decisions on penalty imposition.
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