Procedural lapse in abatement claim cannot defeat substantive relief, though interest liability may still survive.

Procedural non-compliance in claiming abatement under the capacity-based duty rules does not, by itself, justify denial of the substantive abatement benefit where the underlying conditions for abatement are otherwise satisfied. The text notes that the machines were sealed for the relevant period and manufacture resumed thereafter, and that entitlement to abatement was not disputed; the only objection concerned the timing and manner of the claim. The operative effect is that the substantive abatement remains available despite the procedural lapse, while interest liability may still survive.

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Issues: Whether non-compliance with the prescribed procedure for availing abatement under the Rules could justify denial of the substantive abatement benefit, while still sustaining only the interest component.

Analysis: The appellants had sealed the machines for the relevant period and resumed manufacture thereafter. The entitlement to abatement was not in dispute; the only objection was that duty was not first deposited for the entire month before claiming abatement. Following the Tribunal's earlier view on the same statutory scheme, a procedural lapse in the manner of claiming abatement does not destroy the substantive benefit where the conditions for abatement are otherwise satisfied. The consequence of such procedural non-compliance is confined to the liability to interest.

Conclusion: The denial of abatement was not justified. The appeal was allowed to the extent that the impugned order was set aside, while the confirmation of interest was sustained.

Final Conclusion: Substantive abatement under the Rules was preserved despite procedural non-compliance, and only the interest liability survived.

Ratio Decidendi: A procedural infraction in the manner of claiming abatement under the capacity-based duty rules does not warrant denial of the substantive statutory benefit, though interest may still be recoverable.

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