2003 (2) TMI 333 - AT - Central Excise

Summary

Issues:
Challenge against rejection of abatement claim for duty for the period due to closure of Hot Air Stenter - Late closure intimation under Rule 96ZQ(7) - Rejection based on incomplete closure of factory during the period.

Analysis:
1. The appeal challenged the Commissioner's rejection of the appellants' claim for abatement of duty due to the closure of the Hot Air Stenter. The Commissioner rejected the claim citing two grounds: late closure intimation and incomplete factory closure during the specified period.

2. The Counsel for the appellants argued that the closure intimation was given on time, as per the rules, on 13-3-2000, due to intervening holidays on 11th and 12th March. He contended that the entire stenter was closed as per the intimation provided on 10-3-2000. The Commissioner's findings were reiterated by the Departmental Representative (DR).

3. The Tribunal found that the closure intimation was received on 13-3-2000, which was within the prescribed time, considering the intervening holidays. The Tribunal noted that the Commissioner did not consider the General Clauses Act regarding intervening holidays. Regarding the incomplete closure ground, the Tribunal held that the Rule required abatement for the complete closure of the Hot Air Stenter, not all chambers. As one full stenter was closed, the Rule was applicable.

4. The Tribunal concluded that Rule 96ZQ(7) applied to the case. It directed the Commissioner to re-examine the rejection based on belated closure intimation, considering intervening holidays, and granting the appellants a reasonable opportunity to be heard. The appeal was disposed of accordingly.