Accrued abatement rights survive withdrawal of a compounded levy scheme where the claim had already arisen under the rule.

Withdrawal of the compounded levy scheme did not extinguish an abatement claim that had already accrued when one stenter remained sealed. Section 38A of the Central Excise Act, 1944 preserves rights and liabilities acquired or accrued under a rule despite later amendment, repeal, supersession or rescission, so the assessee's entitlement to abatement survived the scheme's withdrawal. The Tribunal also relied on its earlier decision on identical facts and held that denial of relief was unsustainable.

---

---

Issues: Whether the assessee was entitled to abatement of duty for the period during which one stenter remained sealed, notwithstanding withdrawal of the compounded levy scheme before completion of the full period prescribed under the rule.

Analysis: The dispute turned on the effect of withdrawal of the compounded levy scheme on an abatement claim that had already arisen under the scheme. Section 38A of the Central Excise Act, 1944 preserves rights, privileges, obligations and liabilities acquired or accrued under a rule even after its amendment, repeal, supersession or rescission. Applying that principle, the right to claim abatement for the sealed stenter could not be defeated merely because the scheme was withdrawn before the period was completed. The Tribunal followed its earlier decision on identical facts and treated the claim as an accrued right unaffected by the later withdrawal.

Conclusion: The assessee was entitled to the abatement claim and the denial of relief was unsustainable.

---