Abatement under pan masala packing rules cannot be denied merely because non-notified goods were cleared during the period.

The first proviso to Rule 10 of the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 was interpreted in light of Section 3A(3) of the Central Excise Act, 1944. The proviso could not be read so broadly as to deny abatement merely because non-notified goods were cleared during the relevant period, since that would extend the rule beyond the statutory scheme applicable to notified goods. On that construction, clearance of non-notified goods did not by itself bar abatement, and the appellants were held entitled to the relief.

---

---

Issues: Whether the first proviso to Rule 10 of the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 bars abatement merely because non-notified goods were cleared during the relevant period.

Analysis: The proviso was read in light of Section 3A(3) of the Central Excise Act, 1944. A construction that prevents abatement even when only non-notified goods are removed would enlarge the rule beyond the statutory scheme governing notified goods. The restriction in the proviso could not, therefore, be extended to cover clearance of non-notified goods.

Conclusion: The first proviso to Rule 10 does not deny abatement solely because non-notified goods were removed, and the appellants were entitled to abatement.

---