Continuous machine closure for 15 days or more can justify proportionate duty abatement under the pan masala packing rules.

Rule 10 of the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 allows abatement where the packing machines remain continuously inoperative for not less than 15 days. The decisive test is continuous closure for the qualifying period, not whether the full period falls within one calendar month. Where duty for the month had already been deposited and the machines were closed for the required continuous period, abatement could be granted on a proportionate basis for the days falling within that month. The position that the closure covered only part of the month did not defeat entitlement. Abatement of duty was therefore upheld.

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Issues: Whether the assessee was entitled to abatement of duty for the period of factory closure under the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 when the continuous period of machine inoperation extended to 15 days but the claim was made only for the days falling within the relevant month.

Analysis: Rule 10 permits abatement where the machines remain inoperative continuously for not less than 15 days. The relevant test is the continuity and length of closure, not whether the entire qualifying period falls within a single calendar month. Where the assessee had already deposited duty for the whole month and the machinery remained closed for the qualifying continuous period, abatement could be granted for the proportionate days falling in that month. The earlier view that the closure spanned only part of the month did not defeat entitlement, because the statutory condition was continuous inoperation for 15 days or more.

Conclusion: The assessee was entitled to abatement of duty, and the allowance of the claim was upheld.

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