Condonation of delay in factory closure intimation allowed, enabling abatement where timely notice was not practically possible.

Delay in intimating factory closure for abatement under Rule 96ZO(3) of the Central Excise Rules, 1944 was treated as condonable where timely notice was not practically possible because of continuous holidays, including weekends and gazetted holidays. The Tribunal accepted that the closure intimation could not be rejected merely on the ground of late filing, and the assessee was entitled to claim abatement for the closed periods.

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Issues: Whether delay in intimating closure of the factory for claiming abatement under Rule 96ZO(3) of the Central Excise Rules, 1944 was condonable and the assessee was entitled to abatement for the closed periods.

Analysis: The assessee's claim for abatement had been rejected because the intimation of closure was filed late. The Tribunal noted that the delay was occasioned by intervening continuous holidays, including weekends and gazetted holidays, and relied on the view that where timely intimation was not practically possible because of such circumstances, the delay could be treated as condonable. On that basis, the Tribunal held that the closure intimation could not be rejected merely on the ground of delay.

Conclusion: The delay in intimating closure was condonable and the assessee was entitled to claim abatement.

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