Substantial compliance with factory closure intimation rules can preserve duty abatement when notice is filed on the next working day after holidays.

Where a factory closed before continuous departmental holidays, intimation sent on the first working day was treated as substantial compliance with Rule 96ZO(2) for abatement of duty. The closure was said to have resulted from breakdown, and that assertion was not rebutted. Because no circular or trade notice then prescribed a special procedure for holiday situations, the later telegraphic requirement could not govern the relevant period. The operative effect was that the assessee remained entitled to duty abatement for the intervening non-working days.

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Issues: Whether intimation of closure of an induction furnace, given on the first working day after continuous holidays, constituted substantial compliance with Rule 96ZO(2) so as to entitle the assessee to abatement of duty for the intervening non-working days.

Analysis: The furnace had closed on a Friday evening, while the departmental range and divisional offices remained closed on the intervening Saturday and Sunday. The intimation was sent on the next working day. For the relevant period, no departmental circular or trade notice prescribed any special procedure for intimations in such holiday situations. Clause (a) of Rule 96ZO(2) required intimation on the date of closure or the previous day, but the closure was said to have occurred on account of breakdown and that assertion was not rebutted. In these circumstances, the earliest practical opportunity for intimation was the first working day after the holidays. The later trade notice introducing a specific telegraphic procedure could not govern the material period.

Conclusion: The intimation was held to be in substantial compliance with Rule 96ZO(2), and the assessee was entitled to abatement of duty for the disputed days.

Ratio Decidendi: In the absence of a prescribed procedure for holiday situations, intimation of factory closure given on the first working day after continuous departmental holidays satisfies the requirement of substantial compliance under Rule 96ZO(2) for the purpose of abatement.

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