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2023 (12) TMI 304 - CESTAT CHANDIGARHAvailment of CENVAT credit fraudulently without actually receiving the goods in the factory - denial of relief for penalty as provided under SVLDR Scheme - declaration as required under the SVLDR Scheme not made - HELD THAT:- 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 - the filing of declaration, more so, in the instant case, where only penalty is involved, remains a procedural issue or a formality. Tribunal and High Courts have been consistently holding that procedural infractions, if any, should not come in the way of a substantial right. Penalty - HELD THAT:- Though, no positive act of connivance was evidenced by the above appellants, Commissioner goes on to impose penalty on the appellants - such an order passed without appreciation of the facts and law cannot be sustained. On going through the records of the case, it is seen that no investigation at the end of the transporter/ truck drivers has taken place to falsify the claims of the appellants and to support the allegations by the Department. In the absence of the same, penalty cannot be fastened to the appellants merely because of the fact that there was a fraud committed by the company which procured goods from the appellants. Also, the financial transactions claimed by the appellants have not been negated - penalty cannot be imposed on the appellants. The benefit of the Scheme cannot be denied to the appellants just because they did not file the declaration under SVLDR Scheme - the impugned order cannot be sustained on merits also as far as the imposition of penalty, on the appellants herein, is concerned - Appeal allowed.
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