9911796707
TMI Blog2025 (1) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... n its letter dated 8.2.2011 categorically stated that they were giving intimation of closure of the factory-as required under the Rules, would be implied surrender of registration. It is already observed that in the present case, taking into account of order of Hon'ble Supreme Court, notification of Ministry of Environment and Forest, and the letter dated 8.2.2011 of the appellant to close down their factory and further consequence of surrender of registration may not be followed due to subsequent order dated 17.2.2011 of Hon'ble Supreme Court, the appellant should not be penalized by rejecting the refund claims, for the reason, they had re-opened the factory and such reading of the said provision, would be totally unjust, improper and agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended for use by them for the said month. However, as per the judgment of the Hon'ble Supreme Court, the factory was closed for immediate implementation with regard to restriction of the manufacture, clearance and sale of such manufactured goods and an intimation was given to the Department by the appellant vide letter dated 07.02.2011 and the machines were sealed by the jurisdictional Range Officer of the Department. Subsequently, when the Hon'ble Supreme Court granted stay on the earlier order, Appellant requested for de-sealing of the packing machines and the jurisdictional officer of the Central Excise de-sealed the packing machines. Thus, Appellant started production and clearance of 'gutkha' w.e.f. 17.02.2011. In effect the un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 00.01 hrs to 12.00 Noon on 08.02.2011 and hence the goods were deemed to have been produced on 08.02.2011 even though the packing machines were in sealed condition from 12.00 hrs to 24.00 hrs and in inoperative condition. Similarly on 17.02.2011, the machines were de-sealed at 14.00 hrs and from 14.01hrs to 24.00 hrs the machines were in working condition and hence it is construed that on 17.02.2011 also the goods were deemed to have been produced. In view of the above, it appears that the claimant is not eligible for refund of proportionate duty of ₹3,49,11,964/- already paid in advance for the month of February 2011." 4. When the appeal came up for hearing, the learned counsel submits that the issue in the present appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e within the purview of Rule 16 of Rules 2008. 14. The learned Authorized Representative for the Revenue, during the course of hearing, submitted that the appellant reopened the factory on 17.2.2011 and therefore, it cannot be treated as "permanently ceases to work." They have also not surrendered registration. It is difficult to accept the contention of the learned Authorized Representative for the Revenue, as the appellant reopened the factory and therefore, they are not eligible for refund of duty. There is no provision in Rules 2008 that after declaring "permanently ceases to work", the manufacturer would not be entitled to reopen his factory. Rule 16 would cover the situation, where a manufacturer filed an intimation to the Deputy Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Central Excise, Delhi -I [2012 (284) E.L.T. 581 (Tri.-Del.) 6. Learned Authorised Representative (AR) for the Revenue reiterated the findings in the impugned order and also relied on the decision of the Tribunal in the matter of M/s. K.P. Pan Products Pvt. Ltd. Vs. Commissioner of Central Excise, Lucknow reported in 2024 (3) TMI 792- CESTAT ALLAHABAD. 7. Heard both sides and perused the records. 8. We find that the issue is squarely covered by the decision of the Tribunal in appellant's own case. Further, we do not find any reason to take a different view in the matter. Considering the above, since the factory was closed in deference of the Hon'ble Apex Court's order, the appellant is eligible for refund of duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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