Duty abatement for factory closure upheld where 15-day shutdown satisfied the prescribed rule-based condition.

Rule 10 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines Rules, 2010 entitled the manufacturer to duty abatement where the factory remained closed for the prescribed period. As the 15-day closure was undisputed, the prior sanction and utilisation of abatement for an earlier month did not defeat the claim for the later closure period. On these facts, the condition for abatement was satisfied, the denial of abatement was unsustainable, and the appeal was allowed with sanction of abatement upheld.

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Issues: Whether the appellant was entitled to abatement of duty for the period during which the factory remained closed for 15 days under the Chewing Tobacco and Unmanufactured Tobacco Packing Machines Rules, 2010.

Analysis: The factory closure for the relevant period was not in dispute. Rule 10 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines Rules, 2010 entitled the appellant to abatement where the factory remained closed for the prescribed period. The record also showed that the earlier abatement for November 2014 had been sanctioned and utilised, and the later payment position did not defeat the entitlement for the December 2014 closure period. On the facts, the appellant satisfied the condition for abatement for 15 days of closure.

Conclusion: The appellant was entitled to the abatement claim, and the denial of abatement was unsustainable. The appeal was allowed and the sanction of abatement was upheld.

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