Penalties on Co-Noticees Waived Under SVLDRS 2019; Appeals Allowed Despite Non-Declaration Filing.

Once the main demand of duty case is settled under the Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) 2019, penalties imposed on co-noticees cannot be sustained, even if they did not file a declaration under the scheme. As per the scheme, there is a waiver of penalties on the main assessee against whom the demand was confirmed, as well as on other co-noticees. This position is established by the judgments in the cases of Anil K Modani and Subhash Panchal, where it was held that upon settlement of the main duty evasion case under SVLDRS 2019, penalties on co-appellants/co-noticees shall not survive. These Division Bench judgments prevail over the contrary view expressed by the Single Member Bench in the case of Four R Associates and others. Consequently, the penalties imposed on the appellants (co-noticees) are set aside, and the appeals are allowed. .....

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