https://www.taxtmi.com/caselaws?id=272318 Penalty under the Compounded Levy Scheme was unsustainable where the assessee's application for the scheme had been rejected and the duty paid during the pendency of that application was only provisional. That provisional duty was liable to be adjusted against the normal duty liability once ineligibility under the scheme was determined. In those circumstances, the assessee could not be treated as governed by the scheme for the purpose of imposing a penalty equal to duty, particularly because any delay in provisional payment had already attracted interest. The Tribunal followed the settled view that penalty under the scheme does not survive when the assessee is ultimately found ineligible. en-us Mon, 15 Feb 2016 00:00:00 +0530 Wed, 16 Nov 2016 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272318 Penalty under the Compounded Levy Scheme was unsustainable where the assessee's application for the scheme had been rejected and the duty paid during the pendency of that application was only provisional. That provisional duty was liable to be adjusted against the normal duty liability once ineligibility under the scheme was determined. In those circumstances, the assessee could not be treated as governed by the scheme for the purpose of imposing a penalty equal to duty, particularly because any delay in provisional payment had already attracted interest. The Tribunal followed the settled view that penalty under the scheme does not survive when the assessee is ultimately found ineligible. Case-Laws Central Excise Mon, 15 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272318