Co-noticee penalty relief follows main noticee settlement under the Kar Vivad Samadhan Scheme, with waiver of pre-deposit and stay.

A co-noticee was held entitled to waiver of pre-deposit and unconditional stay of penalty where the main noticee had settled the matter under the Kar Vivad Samadhan Scheme. The Tribunal relied on prior decisions granting similar relief to co-noticees and treated that line of authority as sufficient to extend interim protection from the penalty demand. The operative effect was that the appellant obtained waiver and stay despite being proceeded against independently as a co-noticee.

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Issues: Whether the co-noticee appellant was entitled to waiver of pre-deposit and unconditional stay of the penalty in view of the settlement obtained by the main noticee under the Kar Vivad Samadhan Scheme.

Analysis: The appellant was proceeded against as a co-noticee while the main noticee had already achieved settlement under the Kar Vivad Samadhan Scheme. The Tribunal noted that in comparable matters it had set aside penalties on co-noticees and, in the present case, accepted the request for waiver. The presence of prior Tribunal decisions supporting relief to co-noticees was treated as sufficient basis to grant interim protection from the penalty demand.

Conclusion: The appellant was entitled to waiver of pre-deposit and unconditional stay of the penalty.

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