2001 (1) TMI 166 - AT - Central Excise

Summary

Issues:
- Availability of abatement of duty under Section 3A of the Central Excise Act during factory closure period.

Detailed Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the issue of whether M/s. N.K.H. Alloys were entitled to abatement of duty under Section 3A of the Central Excise Act during the period their factory remained closed. The Appellants claimed abatement for specific periods, providing details of their factory closure and reopening procedures, including intimation to the Department and relevant documentation. The Appellants' claim for abatement for a certain period was disallowed based on non-compliance with Rule 96ZO(2)(b), which required specific information to be provided to the authorities during factory closure. The Commissioner had disallowed abatement for one period due to the Appellants' failure to intimate the electricity meter reading when production was stopped, which was a requirement under the rule.

Regarding the second period for which abatement was claimed, the Appellants had sent an intimation regarding the re-start of the furnace, including the meter reading and closing balance, which was received by the Assistant Commissioner on the same day. The Tribunal found that this intimation was in compliance with the rule, contrary to the findings in the impugned Order. The Tribunal held that the Appellants were eligible for abatement of duty for this period based on the satisfactory compliance with the necessary requirements. Consequently, the Tribunal partially allowed the appeal, granting abatement for the period from 20th February to 27th February, 1998.