2024 (5) TMI 1484 - AT - Central Excise

Imposition of personal penalty 26 of Central Excise Rules, 2002 on co-appellant - abating the evasion of duty by M/s. Atlas Plastics - main case of duty evasion is settled under SVLDRS 2019 - HELD THAT - Since, the appellant has been penalized under Rule 26 in connection with the duty evasion made by M/s. Atlas Plastics and their case has been settled under SVLDRS and the appeal was disposed by this Tribunal vide order dated 07.11.2023, the personal penalty of the appellant is not sustainable in view of the decisions of SHRI V.K. AGGARWAL AND SHRI J.K. AGGARWAL VERSUS COMMISSIONER OF CENTRAL TAX, CGST AND CENTRAL EXCISE, NEW DELHI 2023 (9) TMI 178 - CESTAT NEW DELHI and SHRI SASTHI CHARAN BANERJEE VERSUS COMMR. OF CGST CX, BOLPUR COMMISSIONERATE 2022 (12) TMI 1437 - CESTAT KOLKATA . In view of the above judgments, it is settled that once the main case of duty evasion is settled under SVLDRS 2019 the penalty on the Co-appellant shall not survive. The penalty is set aside - The Appeal is allowed.

Summary

The appellant challenged a personal penalty of Rs. 50,000 under Rule 26 of Central Excise Rules, 2002 for abating duty evasion by M/s. Atlas Plastics. The appellant argued that the main party's case was settled under SVLDRS 2019, leading to the disposal of the appeal. The Tribunal considered relevant judgments and set aside the penalty, allowing the appeal. (Judgment date: 08.05.2024)