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TMI Blog2012 (9) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2008 [hereinafter referred to as PMPM Rules]. The Pan Masala/Gutkha Packing Machines were in uninstalled condition during the period from 10-3-2010 to 1-4-2010 and thereafter again from 8-4-2010 to 1-5-2010. The respondent claimed abatement of duty for these periods of closure of the factory in terms of Rule 10 of the PMPM Rules. The abatement was sanctioned by the Jurisdictional Assistant Commissioner for these periods. The Commissioner reviewed these orders of the Assistant Commissioner under Section 35E(2) of the Central Excise Act holding that the same are not legal and proper as the abatement under Rule 10 of PMPM Rules can be granted only for continuous period of 15 days or more falling in a month and therefore the abatement f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the provisions of Section 3A of the Central Excise Act, 1944 read with PMPM Rules, 2008. According to the provisions of Rule 7 of the PMPM Rules, duty payable by a unit for a particular month shall be calculated by application of the appropriate rate of duty specified in the Notification No. 42/2008-C.E., dated 1-7-2008 to the number of operating packing machine in the factory during the month. In terms of Rule 8 of the PMPM Rules, the number of operating packing machines during a month for the purpose of Rule 7 is to be taken as the maximum number of packing machines installed on any day during the month. However, under Rule 10 of the PMPM Rules, proportionate abatement of duty can be allowed for the period when the entire factory was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on packing machines would be opened under the physical supervision of Superintendent of Central Excise." 5. From a reading of this Rule, it is clear for the purpose of abatement, the following conditions are to be satisfied :- (1) The period of closure of the factory should be a continuous period of 15 days or more ; (2) The intimation regarding closure is required to be given to the Deputy/Assistant Commissioner with a copy to Jurisdictional Superintendent at least 7 days prior to the closure who shall forthwith seal all the packing machines in such a manner that the same cannot be operated. Thereafter when the manufacturer intends to re-start the production, he is required to inform the Jurisdictional officers well in advance, who s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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