Once Main Noticee Settles Under SVLDRS, Penalty on Co-Noticees Cannot Survive: CESTAT

CESTAT quashed penalties imposed on co-noticees in a tax dispute after the main noticee had already settled the matter under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS). The tribunal reasoned that penalties cannot remain in effect once the principal tax liability has been extinguished through the settlement scheme. This ensures that the benefits of the settlement scheme extend to all parties involved in the composite tax disputes.