2001 (10) TMI 163 - AT - Central Excise

Summary

Issues:
Claim for abatement for the period of closure rejected by Commissioner - Appeal against Commissioner's order - Interpretation of provisions under Central Excise Act, 1944 and Central Excise Rules, 1944 - Applicability of clauses (e), (f), and (g) of sub-rule (7) of Rule 96ZQ - Eligibility for abatement during specified closure periods.

Analysis:

1. The appellant, a manufacturer of specified textile fabrics produced with the aid of Hot Air Stenter, filed an appeal against the rejection of their claim for abatement by the Commissioner of Central Excise, New Delhi. The claim for abatement pertained to specific closure periods, as detailed in the order, during which the factory did not produce the notified goods for not less than seven days. The Commissioner rejected the claim based on non-compliance with certain clauses of Rule 96ZQ of the Central Excise Rules, 1944.

2. The key issue revolved around the interpretation and application of clauses (e), (f), and (g) of sub-rule (7) of Rule 96ZQ in determining the eligibility for abatement during different closure periods. The appellant argued that they were willing to pay the short-paid duty for certain months to seek abatement, emphasizing the need for consideration rather than outright rejection by the Commissioner.

3. For the closure periods of 19-4-99 to 26-4-99, 8-5-99 to 17-5-99, and 21-6-99 to 28-6-99, the provisions under clause (e) of sub-rule (7) of Rule 96ZQ were deemed applicable. The appellant expressed readiness to pay the duty shortfall for these periods to support their claim for abatement. The Tribunal directed the Commissioner to allow the appellant to make the payment and then consider their claim for abatement.

4. Regarding the closure period of 12-7-99 to 15-9-99, the Tribunal analyzed the application of clause (f) of sub-rule (7) of Rule 96ZQ. The appellant was entitled to claim abatement without paying duty in advance for this period. The Commissioner's reliance on clause (g) to deny this benefit was deemed incorrect by the Tribunal. The Tribunal held that clause (g) pertained to reopening sealed stenters, not to the consideration of abatement claims under clause (f).

5. Consequently, the Tribunal partially allowed the appeal, remanding the matter to the Commissioner for reconsideration of the abatement claims for the specified months of April, May, and June. The decision highlighted the necessity of a proper interpretation of the relevant provisions and adherence to procedural requirements for claiming abatements under the Central Excise Act, 1944 and Central Excise Rules, 1944.