Abatement amount for inoperative machinery is computed proportionately by days of non-operation under the cess rules. Rule 16 prescribes the formula for calculating the abatement amount for a month as A = (C/N) x D, where C is the total cess liability for the machine, N is the number of days in the month, and D is the number of continuous days the machine was inoperative. The illustrations show how the abatement is computed for a high-speed pouch packing machine, including a case of inoperation across two months, with the abatement allowed by the proper officer and adjusted against subsequent cess liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Abatement amount for inoperative machinery is computed proportionately by days of non-operation under the cess rules.
Rule 16 prescribes the formula for calculating the abatement amount for a month as A = (C/N) x D, where C is the total cess liability for the machine, N is the number of days in the month, and D is the number of continuous days the machine was inoperative. The illustrations show how the abatement is computed for a high-speed pouch packing machine, including a case of inoperation across two months, with the abatement allowed by the proper officer and adjusted against subsequent cess liability.
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