2024 (12) TMI 1571 - AT - Central Excise

Waiver of penalty imposed under Rule 26 of CER on co-noticee - main case has been settled - HELD THAT - It is found that in the judgment cited by the Learned Counsel particularly a Division Bench judgment in the case of M/S. SIEMENS LTD 2023 (5) TMI 377 - CESTAT MUMBAI issue is settled that in case the main party s case where the demand has been confirmed is settled under SVLDRS, 2019 penalty on the co-noticee will not sustain. As regard the judgment relied by the Learned AR since it is Single Member judgment and thereafter the Division Bench has given the judgment which prevails over the Single Member Bench. Therefore the same is distinguished. The penalty is set aside appeal is allowed.

Summary

The Appellate Tribunal (CESTAT Ahmedabad), through Hon'ble Member (Judicial) Mr. Ramesh Nair, heard an appeal seeking waiver of penalty imposed under Rule 26 related to a demand confirmed against Vraj Packaging Pvt Ltd. The appellant contended that since the main demand case was settled under SVLDRS, 2019, as per this Tribunal's prior order (Order No. A/11013/2021), co-noticees should not be liable for penalty, relying on the Division Bench judgment in Shri Paresh B Patel (Final Order No.12569/2024). The Revenue reiterated the impugned order's findings.The Tribunal, after considering submissions and relevant precedents, held that "in case the main party's case, where the demand has been confirmed, is settled under SVLDRS, 2019, penalty on the co-noticee will not sustain," following the Division Bench ruling in M/S. SIEMENS LTD. The Tribunal distinguished the Revenue's reliance on a Single Member judgment, as the Division Bench decision prevails.Accordingly, the penalty was set aside and the appeal allowed.