https://www.taxtmi.com/caselaws?id=775709 Under the Section 3A compound levy scheme, duty could not be confirmed on annual capacity of production where the assessee had consistently disputed the capacity fixation, paid duty under protest, and maintained payment on actual production basis; on those facts, the Revenue could not show a prior acceptance of capacity-based assessment, so the demand was unsustainable. Interest and penalty also could not be sustained because the special levy framework did not itself authorise such liability beyond clear statutory sanction, and the failure of the principal demand removed the basis for ancillary levies. The impugned order was set aside in full, with consequential relief as permitted in law. en-us Fri, 13 Jun 2025 00:00:00 +0530 Wed, 30 Jul 2025 08:21:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775709 Under the Section 3A compound levy scheme, duty could not be confirmed on annual capacity of production where the assessee had consistently disputed the capacity fixation, paid duty under protest, and maintained payment on actual production basis; on those facts, the Revenue could not show a prior acceptance of capacity-based assessment, so the demand was unsustainable. Interest and penalty also could not be sustained because the special levy framework did not itself authorise such liability beyond clear statutory sanction, and the failure of the principal demand removed the basis for ancillary levies. The impugned order was set aside in full, with consequential relief as permitted in law. Case-Laws Central Excise Fri, 13 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775709