Rule 26 Appeal Succeeds: Exemption Claim Validated, Penalty Nullified for Non-Manufactured Goods Refund Dispute

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....CESTAT allowed the appeal, setting aside penalty orders under Rule 26 of Central Excise Rules, 2002. The tribunal found the department's objection regarding pending high court proceedings unmeritorious, referencing a prior similar case. The appellants' area-based exemption claim was challenged, but the tribunal determined the penalty imposition was legally unsustainable. The decision effectively nullified the penalty imposed for inadmissible refund claims related to non-manufactured goods, providing relief to the appellants based on procedural and substantive legal grounds.....