Tribunal nullifies penalty, citing Sabka Vishwas Scheme benefits for Appellant

The Tribunal allowed the appeal and set aside the penalty imposed on the present Appellant, despite negligence attributed to them. The Appellant's involvement in the settlement process under the Sabka Vishwas Scheme entitled them to nil penalty under Section 124(i)(b) of the Scheme. The Tribunal considered the Appellant's lawful declaration and failure to avail benefits, in line with previous Tribunal decisions and a Board Circular, ultimately absolving the present Appellant from penalty liability post-settlement.

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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 The appeal filed by the main Appellant was dismissed as deemed withdrawn by the Tribunal.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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