Duty abatement under Rule 10 applies when continuous factory closure for the required period is factually established.

Rule 10 of the 2010 Rules allows abatement of duty when a factory does not produce the notified goods during a continuous period of fifteen days or more, subject to prescribed conditions. The text states that the relevant remand was limited to verifying the actual closure period, and the Principal Commissioner found on departmental sealing and unsealing records, as well as the show cause notice, that the factory had remained closed for at least fifteen continuous days in each month. On that factual basis, the legal consequence under rule 10 followed, and the demand could not be sustained because abatement could not be denied on a narrow reading of the remand direction.

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Issues: Whether the appellant was entitled to suo motu abatement of duty under rule 10 of the 2010 Rules on the finding that the factory remained closed for a continuous period of fifteen days or more in each month during the relevant period.

Analysis: Rule 10 of the 2010 Rules permits abatement where a factory does not produce the notified goods during a continuous period of fifteen days or more, subject to the prescribed conditions. The earlier remand was confined to determining the actual period of factory closure and the Principal Commissioner recorded a categorical finding that the factory remained closed for at least fifteen continuous days in each month. That finding was based on the departmental sealing and unsealing records and the factual position in the show cause notice, and it was not disputed by the Department. Once that factual foundation was established, the legal consequence under rule 10 followed, and the appellant could not be denied abatement merely because of the remand directions.

Conclusion: The appellant was entitled to claim suo motu abatement under rule 10 of the 2010 Rules, and the demand could not be sustained.

Final Conclusion: The impugned order was set aside and the appeal was allowed on the footing that the conditions for abatement stood satisfied.

Ratio Decidendi: Where the statutory conditions for abatement under rule 10 are met and the factual remand confirms continuous factory closure for the requisite period, duty abatement cannot be denied on a narrow reading of the remand direction.

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