Refund for sealed-period duty cannot be denied merely because manufacture later restarted under fresh registration.

Under a machine-based levy scheme, duty is linked to the period during which machines are actually operational, so refund is available for days when the machines remained sealed and no manufacture took place. The assessee had surrendered registration, the department sealed the machines, and manufacture later restarted under a fresh registration at the same premises without any change in name or constitution. The reopening provision was treated as pari materia with the Pan Masala scheme, where a fresh start after permanent closure does not by itself defeat refund for the closed period. On those facts, refund for the sealed period was held allowable.

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Issues: Whether the assessee was entitled to refund of duty for the period during which the machines remained sealed after surrender of registration and before recommencement of manufacture under a fresh registration.

Analysis: The duty under the relevant machine-based levy scheme is payable with reference to the working machines and the period for which they remain operational. The machines were sealed by the department after surrender of registration and remained sealed for the disputed days. There was no change in the assessee's name or constitution, and the same premises were used after the fresh registration. The provision governing closure and reopening was held to be pari materia with the corresponding rule under the Pan Masala scheme, under which reopening after an intimation of permanent closure does not by itself defeat refund entitlement for the closed period. On these facts, the fresh registration did not justify denial of refund for the days when no machine was working.

Conclusion: The refund claim for the disputed period was allowable and the assessee succeeded.

Final Conclusion: The appeal was allowed with consequential relief, and the duty paid in advance for the sealed period was held refundable.

Ratio Decidendi: Where machines remain sealed during the relevant period and the governing levy scheme provides for duty linked to actual working days, refund cannot be denied merely because the assessee later obtained fresh registration and restarted manufacture.

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