Order date – 14 December 2022

Facts –

• The Appellant, Shri Sasthi Charan Banerjee, is an Accountant of M/s. Calstar Sponge Limited.
• A penalty of Rs.25. 000/- was imposed on the appellant Vide the Order-in-Original No.06/CSL/ASN-I/12-13 dated 28.12.2012

Issue –

• Whether the penalty imposed on the appellant is in order?

Order –

• The Tribunal observed that the main Appellant, M/s Calstar Sponge Limited have settled the dispute under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and the Discharge Certificate of SVLDRS-4 to this effect has been issued to them for full and final settlement of Tax Dues under Section 127 of the Finance (No.2) Act, 1994 read with Rule 9 of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
• It was observed that since the main Noticee, M/s Calstar Sponge Limited has already settled the dispute under the said Scheme, the penalty imposed on the Accountant does not survive and therefore, there was no occasion for the Accountant to file any separate application on the same grounds.
• The Tribunal relied on the decision of the Tribunal in the case of P.B.Vyas Vs. Commissioner of Central Excise, Mumbai III reported in 2021 (378) ELT 177 (Tri.-Mumbai) has held that insistence of payment of penalty by a co-noticee, when the main party has settled the issue under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, defeats the spirit of the scheme itself.
• In view of the ratio of the above decision of this Tribunal, the penalty imposed on the Accountant, Mr. Sasthi Charan Banerjee being a co-noticee, is set aside.
• Hence the appeal is disposed of.