9911796707
TMI Blog2015 (11) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... his factory. In April, 2013, the appellant paid Rs. 70,00,000/- (seventy lakhs) towards duty under sub-clause (3) of section 3A of Central Excise At, 1944. The appellant vide letter dated 12.4.2013 requested the department to seal all five pouch packing machines with effect from 16.4.2013. The Range Superintendent sealed all the five pouch packing machines under regular panchnama dated 15/16.04.2013. Thereafter on 10.5.2013 and 13.5.2013, the appellant requested the Assistant Commissioner for unsealing of the five pouch packing machines in order to restart production. As per direction of the Assistant Commissioner, the Range Superintendent unsealed the five machines on 15.5.2013. There was no production of pan masala in the factory for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions for claiming abatement. That both these conditions having been satisfied in the case of appellant. The denial of abatement is unjustified. 4. Against this, learned DR supported the impugned order and urged that the Commissioner (Appeals) has rightly denied abatement. According to Revenue, the claim of abatement is not sustainable for three reasons. Firstly, the application for abatement is in regard to above period from 01.05.2013 to 15.5.2013. The production was closed actually from 16.4.2013 upto 15.05.2013. This is a continuous period. The appellant has split the period falling in April and May into two separate periods. Being a single period of closure of production, the period in the claim is included in the earlier application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oever, in respect of notified goods shall be undertaken and no removal of notified goods shall be effected by the manufacturer except that notified goods already produced before the commencement of said period may be removed within first two days of the said period : Provided further that when the manufacturer intends to restart his production of notified goods, he shall inform to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, of the date from which he would restart production, whereupon the seal fixed on packing machines would be opened under the physical supervision of Superintendent of Central Excise. (emphasis supplied) 6. It is not disputed that the machines we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hole month of May, if he wishes If he wants to unseal the machines and restart production. His option is only to pay duty and then claim abatement for the period when there is no production. The appellant has then rightly filed the claim for the period 01.05.2013 to 15.05.2013. The view of the Commissioner (Appeals) that the closure is of a single continuous period and is included in the earlier claim is without any substance. If the argument of the Revenue is accepted, the assessee would put to an artificial restriction of not being able to close down the factory for a period spread over more than a month, which would be absurd. 7. The second ground alleged is that the duty for the month of May was not paid within the due date. It is corr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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