Appellant, a proprietary firm, was levied penalty for...

Appellant, a proprietary firm, was levied penalty for involvement in illegality by not receiving goods and receiving invoices only with intention to avail CENVAT credit and clearing goods without payment of duty. Main appellant settled dues under Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules 2019. Tribunal held that discrepancy in stock at consignee's factory cannot lead to adverse inference against appellant as it could be due to various reasons, not attributable solely to appellant among all suppliers. Consignee made payments by cheques for goods supplied under 18 invoices. Respondent did not dispute RG 23D Register and quarterly CENVAT returns showing details of credit availed and passed on. Considering these facts and main appellant settling dues under Scheme allowing waiver of interest and penalty to co-noticee, penalty against appellant as co-noticee was set aside. Appeal allowed.