CESTAT allows Immunity from Penalty u/s 108(1) of Companies Act as declaration filed by Appellant under VCES stands allowed

The CESTAT Delhi bench granted immunity from penalty under Section 108(1) of the Companies Act to M/s. Shankar Construction Company, as their declaration under the Voluntary Compliance Encouragement Scheme (VCES) was accepted. The appellant had paid the full tax dues with interest within the prescribed time, and the designated authority issued an acknowledgment of discharge. This ruling underscores the importance of compliance with VCES provisions and provides relief to taxpayers who adhere to the scheme’s requirements, ensuring they are not subjected to penalties or further proceedings.