9911796707
TMI Blog2025 (2) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... noticees penalty will not sustain even if they have not filed a declaration under SVLDRS-2019'.
Conclusion - The penalties imposed on co-noticees should be set aside if the main party's case is settled under the SVLDR Scheme, 2019.
The appeal is liable to be accepted. Accordingly, appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Learned Authorised Representative, was in the specific context of "conjunctions" employed in rule 14 of CENVAT Credit Rules, 2004 and the consequence thereof for recovery of credit along with interest. Chapter V of Finance Act, 2019 expressly pertains to "legacy dispute resolution scheme" which considered deposit of duty involved in dispute to suffice for grant of relief of interest, penalty and any other consequence under Central Excise Act, 1944 or Finance Act, 1944. The scheme is all about "tax dues" which itself has been set out in section 123 of Finance Act, 2019 with all the alternatives restricting themselves to the total amount of duty or total amount of duty in dispute, as the case may be. Furthermore, section 124 of Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 08.05.2024 "In this appeal the appellant has challenged the personal penalty of Rs.50,000/- under Rule 26 of Central Excise Rules, 2002. The penalty was imposed on the charge of abating the evasion of duty by M/s. Atlas Plastics. When the matter was called out written submission was placed on record by the appellant wherein it is submitted that the main party's case of M/s. Atlas Plastics has been settled under SVLDRS 2019 and this Tribunal has disposed of appeal vide order No. 12602/2023 dated 07.11.2023 in the light of the settlement of the case of main party, hence the personal penalty of appellant be set aside. It is also submitted that the appellant has not played any role for evasion of duty by M/s. Atlas Plastics. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once the main case of duty evasion is settled under SVLDRS 2019 the penalty on the Coappellant shall not survive. 4. Accordingly, the penalty is set aside. The Appeal is allowed." In view of above judgments given by the two coordinate Division Benches, the penalties imposed on the co-noticees in a case where the main noticee against whom the demand is confirmed, the case is settled under SVLDRS then in respect of other co-noticees penalty will not sustain even if they have not filed a declaration under SVLDRS-2019 and decision on the issue of SVLDRS-2019 in the case of Four R Associates and others reported as 2023 (11) TMI 9 CESTAT-Chennai given by Single Member Bench whereas the aforesaid cited decisions are given by Division Bench. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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