SCSS and 80C

We can claim deduction u/s 80C for Senior Citizen Saving Scheme(SCSS) upto an amount of Rs. 100000 but I wonder how it is possible?

As per the scheme the Senior Citizen can withdraw the sum prematurely with a penalty of 1.5 percent after one year and 1 percent penalty after two years. In this case if some one withdraw the amount after two years and reinvest it for tax purposes to take the benefit of Section 80C. Is it allowded under 80C?

Thanks