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2016 (3) TMI 130 - AT - Central ExciseCompounded Levy Scheme for textile in terms of Rule 96 ZNA of the Central Excise Rules - application for the scheme was rejected - penalty imposed on the appellant - Held that:- In the present case, the penalty equal to the duty is not legally sustainable. When the application of the appellant for the scheme was rejected, it is clear that the appellants were not governed by the provisions of the Scheme. Invoking one of the provisions of the Scheme for imposing penalty is thus legally not sustainable. Further, during the pendency of their application, they were discharging duty only provisionally in terms of the Scheme as permitted by the Rules itself. In fact, the appellants paid much higher duty than the actual liability as arrived at after rejection of their application. Considering the above position, we find the impugned order is not sustainable and set aside the same. - Decided in favour of assessee
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