Abatement under compounded levy scheme requires meaningful consideration of electricity board certificate and fresh hearing on remand.

Temporary closure under the compounded levy scheme required the authority to assess an abatement claim by giving meaningful consideration to the Government electricity board certificate and its evidentiary value under Rule 96ZO(2) of the Central Excise Rules, 1944. The Tribunal's earlier remand had directed that such a certificate could be taken into account, and the later order was found deficient because it did not properly apply that direction or examine the certificate with due care. A comparable certificate had also been treated as substantive evidence in another matter. The rejection of abatement was therefore set aside and the matter remanded for fresh consideration after hearing the assessee.

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Issues: Whether the rejection of the abatement claim under the compounded levy scheme was sustainable without proper consideration of the electricity board certificate and its evidentiary value under Rule 96ZO(2) of the Central Excise Rules, 1944.

Analysis: The abatement claim arose from temporary closure of the unit during the relevant period. The Tribunal had earlier remanded the matter with the specific direction that a certificate issued by a Government department could be taken into account while considering abatement under Rule 96ZO(2). In the present proceedings, the Commissioner was required to evaluate the UPSEB certificate and its evidentiary worth in a meaningful manner. The impugned order did not reflect proper application of mind to that certificate, nor did it adequately follow the earlier remand directions. The Tribunal also noted that a similar certificate had been treated by the same Commissioner as substantive evidence in another matter involving comparable facts.

Conclusion: The rejection of the abatement claim was not sustained. The matter was remanded to the Commissioner for fresh consideration after properly examining the electricity board certificate and affording an opportunity of hearing to the assessee.

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