Settlement under SVLDRS prevents co-noticees from sustaining appeals against personal penalties once principal liability is finally resolved.

Where the principal liability under the Sabka Vishwas (Legacy Dispute Resolution) Scheme was settled, the Article explains that prior decisions establish that co-noticees cannot maintain appeals attacking personal penalties derived from the same original order; the settlement of the main appellant removes the legal basis for collateral challenges to personal penalty liability. The analysis applies those precedents to conclude that personal penalties imposed on co-noticees cannot be sustained once the principal liability has been resolved under the Scheme.

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Issues: Whether appeals filed by co-noticees challenging personal penalties arising from an Order-in-Original can be sustained after the principal appellant has settled the liability under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Analysis: The Tribunal examined prior decisions addressing the effect of a settlement by the main appellant under the SVLDRS, 2019 on proceedings instituted against co-noticees for personal penalties arising from the same Order-in-Original and held that once the principal liability was settled under the Scheme, the appeals by co-noticees against personal penalties could not be sustained. The Tribunal applied those precedents to the appeals before it and concluded that the settled position of the main appellant removes the basis for maintaining the co-noticees' challenges to personal penalties.

Conclusion: The appeals filed by the co-noticees are allowed; the personal penalties challenged in those appeals cannot be sustained following the main appellant's settlement under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

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