2018 (3) TMI 830 - AT - Central Excise

Refund claim - Abatement claim - closure of factory - Held that - In terms of Rule 10 of Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008, the assessee entitled to claim abatement of duty paid if their machines were remained in-operational continuously for 15 days - Admittedly, the machines were remained closed for continuous 15 days. In that circumstances, if the refund claim filed by the respondent for 13 days in the month of January, 2013, it cannot be said that the said refund claim cannot entertainable - appeal dismissed - decided against Revenue.

Summary

Issues:
Appeal against allowing abatement claim of duty paid during factory closure.

Analysis:
The case involves an appeal by the Revenue against the decision of the learned Commissioner (Appeals) to allow the abatement claim of duty paid by the respondent during the closure of their factory. The respondent, engaged in manufacturing Pan Masala, deposited duty for January 2013 but filed for discontinuation of production due to machine inoperability from 19.01.2013 to 03.02.2013, seeking abatement for this period. The Revenue contended that as the machines were closed for only 13 days in January, the abatement claim was not valid. However, Rule 10 of the Pan Masala Packing Machine Rules states that abatement can be claimed if machines remain inoperational for 15 continuous days. The Tribunal noted that the machines were indeed closed for 15 days continuously, making the abatement claim valid. Referring to a similar case in the Hon'ble High Court of Allahabad, the Tribunal emphasized that the closure period of 15 days need not fall within a single month, as long as it is continuous. Therefore, the learned Commissioner (Appeals) rightly granted the abatement claim, following the precedent set by the High Court. Consequently, the Tribunal upheld the decision of the Commissioner, dismissing the Revenue's appeal and disposing of the Cross Objection as well.