2024 (5) TMI 1273

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....he case are that the appellants are issued with show-cause notice along with M/s. Ghataprabha Sahakari Sakkare Karakhane Niyamit on 23.06.2009 alleging that the noticee company has failed to discharge duty within the due date as prescribed under Rule 8(3A) of Central Excise Rules, 2002. The main noticee M/s. Ghataprabha Sahakari Sakkare Karakhane Niyamit has paid the duty along with interest without utilising the cenvat credit in terms of Rule 8(3A) of Central Excise Rules, 2002 during the period June 2008 to February 2009. The said show-cause notice was adjudicated and the demand issued in the notice was confirmed and the appellants were visited with personal penalty of Rs.2.00 lakhs (appeal No.E/310/2010), Rs.10.00 lakhs (appeal No.E/311/....

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....lms Private Limited & others(supra). After analysing the relevant provisions, this Tribunal observed as follows:- 7. Heard both sides and perused the records of the case. The case of the Department is that the appellants have not made the declaration as required under the SVLDR Scheme; Department relies on Section 125 of the Finance Act, 2019 and Rule 3 of the Rules made under the Scheme and submits that declaration is to be submitted case-wise and therefore, each of the appellants require to file a declaration and therefore, there is no automatic immunity to the conoticees when the main noticee settles the duty and penalty under the Scheme. 8. Rule 3 of the Rules made under the Scheme is as follows: 3. Form of de....

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.... paid or is nil, then, the entire amount of late fee or penalty; ---- 10. It is clear from the provision of Section 124 that the applicants are eligible for relief of entire penalty or late fee. Now the question arises as to whether the immunity or relief is automatic or is consequent upon the declaration required to be filed by the assessees. The statutory provisions indicate that the appellants are eligible for relief for the entire amount of penalty or late fee. The relief is not subject to the satisfaction of the committee constituted for operationalization of the Scheme as in the case of settlement of duty. Had the appellants filed declarations, the said committee had no role but to give relief as contained in Section 124. Thu....