Compounded levy abatement allowed where furnace closure was intimated by telegram on holidays and confirmed on the next working day.

Under the compounded levy scheme, abatement of duty was held admissible where furnace closure was intimated by telegram on Saturdays, Sundays and holidays, with written intimation filed on the next working day. The analysis accepted that, for non-working days, telegram-based notice followed by timely written confirmation satisfied the procedural requirement for claiming abatement. Since the departmental authority had already allowed abatement from the next working day, denial only for the intervening holidays and weekends was unjustified, and the assessee's claim was upheld.

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Issues: Whether abatement of duty under the compounded levy scheme could be denied for Saturdays, Sundays and holidays when closure of the furnace was intimated by telegram and the written intimation was filed on the next working day.

Analysis: The appellants were governed by the compounded levy scheme under Section 3A of the Central Excise Act, 1944 read with Rule 96ZO of the Central Excise Rules, 1994. The record showed that on the relevant occasions closure was intimated through telegram on Saturdays, Sundays and holidays, and the prescribed written intimation was submitted on the next working day. The departmental authority had already accepted abatement from the next working day, and the dispute was confined to the intervening non-working days. The reasoning accepted that where prior written intimation could not practically be given for holidays, telegram-based intimation followed by written confirmation on the next working day satisfied the requirement for claiming abatement.

Conclusion: Denial of abatement for the Saturdays, Sundays and holidays was unjustified. The claim for abatement was held admissible in favour of the assessee.

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