2024 (5) TMI 1335

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....tated the facts of the case are that the appellant is Plant Manager of M/s. L.G. Balakrishna & Brothers Ltd., Mysore. A show-cause notice was issued to M/s. L.G. Balakrishna & Brothers Ltd. alleging clandestine manufacture and clearance of the finished goods without payment of duty of Rs.30,86,816/- and recovery of the same with interest and penalty. On adjudication, the demand was confirmed with interest and penalty; also penalty of Rs.1 lakh was imposed on the appellant working as Plant Manager of M/s. L.G. Balakrishna & Brothers Ltd. under Rule 25 of Central Excise Rules, 2002. On appeal, the learned Commissioner(Appeals) rejected his appeal. hence the present appeal. 3. At the outset, the learned company representative appearing for ....

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....th 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 declaration under section 125. - (1) The declaration under section 125 shall be made electronically at https://cbic-gst.gov.in in Form ....

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....t 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. Thus, we find that the filing of declaration, more so, in the instant case, where only penalty is involved, remains a procedural issue ....