Appeals Granted: Penalties Erased Under Sabka Vishwas Scheme 2019, Aligning with Scheme's Intent for Individuals.

The Tribunal allowed the appeals, setting aside the impugned order and erasing penalties against the individual-appellants. It ruled that the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, which M/s JSW Ispat Steel Ltd availed, necessitates penalty erasure for individual-appellants, as continuation of penalties contradicts the scheme's intent. Judgment was pronounced on 30/11/2023.

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Issues:
Appeals challenging order upholding duty recovery, interest, penalty, and other detriments under CENVAT Credit Rules, 2004. Interpretation of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Eligibility of individual-appellants for relief under the scheme.

Analysis:
The judgment pertains to three appeals challenging an order upholding duty recovery, interest, penalty, and other detriments under CENVAT Credit Rules, 2004 issued to M/s JSW Ispat Steel Ltd and others. The appeals were filed after the introduction of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. M/s JSW Ispat Steel Ltd availed the scheme, leading to the deemed withdrawal of their appeal. The individual-appellants argued that the proceedings against them should stand concluded following the withdrawal of the principal-noticee's appeal.

The Chartered Accountant for the appellants contended that detriments against others should not survive once proceedings against the principal-noticee are terminated. However, the Authorized Representative argued that separate declarations are required for separate appeals under the scheme, citing a Supreme Court decision precluding any dilution of statutory intent.

The Tribunal noted that the scheme focuses on tax dues and relief is granted based on the total duty amount or disputed duty amount. The scheme aims to erase penalties, fines, and interest. As the individual-appellants would not have been eligible for relief under the scheme due to the duty recovery upheld in the impugned order, their penalties should be erased. The disposal of M/s JSW Ispat Steel Ltd's application under the scheme renders the continuation of penalties against the individual-appellants inconsistent with the relief scheme, making them eligible for penalty erasure.

Therefore, the appeals were allowed, and the impugned order was set aside, leading to the erasure of penalties against the individual-appellants. The judgment was pronounced on 30/11/2023.

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