Petitioner wins appeal challenging duty & penalty under Sabka Vishwas Scheme, CBIC circular

The petitioner challenged the rejection under the Sabka Vishwas Scheme and a CBIC circular, seeking limits on the Designated Committee's powers. Their appeal before the Tribunal was successful, rendering the writ petition moot. The Tribunal allowed the petitioner's appeal against the duty and penalty, noting similar outcomes for other co-noticees. Despite a corrigendum on penalties not being presented, the petitioner's success led to the writ petition's disposal, with the option to revive it if the Tribunal's decision were overturned on appeal by the revenue.

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Issues:
Challenge to rejection under Sabka Vishwas Scheme, challenge to CBIC circular, declaration of Designated Committee's powers, appeal before Tribunal, imposition of duty and penalty, corrigendum on penalty, appeal success rendering writ petition infructuous.

Analysis:
1. The petitioner challenged the rejection of their application under the Sabka Vishwas Scheme and also challenged paragraph 10(i) of the CBIC circular. Additionally, they sought a declaration that the Designated Committee under the Scheme cannot adjudicate beyond the parameters of the Finance Act, 2019.

2. The petitioner had previously filed an appeal against the Order-in-Original before the Tribunal, which was allowed. It was noted that the appeals of other co-noticees were also allowed, who had not attempted to seek benefits under the Scheme like the petitioner.

3. The Order-in-Original imposed duty and penalty on the co-noticees, while a personal penalty was imposed on the petitioner's proprietor(s)/director(s)/partner(s). There was mention of a corrigendum regarding the imposition of penalty, but it was not placed on record during the proceedings.

4. The writ petition was deemed infructuous as the petitioner succeeded in their appeal before the Tribunal. However, it was stated that if the revenue were to appeal and the Tribunal's decision was reversed, the petitioner could revive the writ petition.

5. Ultimately, the writ petition was disposed of based on the success of the appeal before the Tribunal, with the petitioner having the option to revive it if needed in the future.

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