Appeals Allowed: Procedural Lapses Can't Deny Benefits Under Sabka Vishwas Scheme, 2019; Penalties Not Sustained.

The Tribunal allowed the appeals, determining that the benefits of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, could not be denied due to procedural lapses in filing declarations. The impugned order imposing penalties on the Plant Manager was not sustained. The Tribunal emphasized that procedural issues should not obstruct substantial rights, aligning with previous precedents. The appeal was thus allowed, and the decision was pronounced in Open Court on 22.05.2024.

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Issues involved: Appeal against Order-in-Appeal alleging clandestine manufacture and clearance of goods without duty payment, imposition of penalty on Plant Manager u/r 25 of Central Excise Rules, 2002, applicability of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 on personal penalties post main applicant's settlement.

Summary:
The appeal was filed against Order-in-Appeal alleging clandestine activities and imposition of penalties. The appellant, a Plant Manager, was penalized under Rule 25 of Central Excise Rules, 2002. The company applied under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and the application was accepted, resulting in the dismissal of the company's appeal. The appellant argued for similar treatment based on precedents like JPFL Films Private Limited & others Vs. CCE, Ludhiana. The Revenue supported the findings of the Commissioner(Appeals).

The main issue was whether personal penalties could survive after the main applicant settled under SVLDRS, 2019. The Tribunal analyzed the Scheme's provisions and observed that each appellant needed to file a declaration separately. The relief under the Scheme was automatic for penalty or late fee, not subject to committee satisfaction. The Tribunal held that procedural issues should not impede substantial rights, citing previous cases where penalties were waived post-main party discharge.

In conclusion, the Tribunal allowed the appeals, stating that the Scheme's benefits could not be denied for failure to file declarations. The impugned order was not sustained on merits regarding penalty imposition. The decision was in line with previous Tribunal precedents, and the appeal was allowed accordingly.

The judgment was pronounced in Open Court on 22.05.2024.

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