Strict compliance for excise abatement fails where required meter readings are not furnished for claimed factory closure periods.

Abatement under Rule 96ZO(2) of the Central Excise Rules, 1944 requires strict compliance with all prescribed conditions in the compounded levy scheme under Section 3A of the Central Excise Act, 1944. The appellant had informed closure and restart of production, but failed to furnish electricity meter readings at those stages, which were treated as essential to verify whether manufacture had actually stopped. The explanation that the meter room was sealed by the electricity board was rejected because no convincing material showed that no production took place during the claimed closure periods or that any alternative source of power was used. The claim for abatement therefore failed.

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Issues: Whether the appellant was entitled to abatement under Rule 96ZO(2) of the Central Excise Rules, 1944 for the claimed factory-closure periods despite not furnishing electricity meter readings at the time of closure and restart of production.

Analysis: The conditions in Rule 96ZO(2) were treated as mandatory for claiming abatement under the compounded levy regime under Section 3A of the Central Excise Act, 1944. The appellant had intimated closure and restart of production, but did not furnish the meter readings required at those stages. The explanation that the meter room was sealed by the electricity board was not accepted, since the appellant did not produce convincing material to show that no production took place during the claimed closure periods or to substantiate use of any alternative source of power. The requirement of meter readings was regarded as crucial to verify whether production had actually stopped.

Conclusion: The appellant was not entitled to abatement, as the mandatory requirements of Rule 96ZO(2) were not fulfilled.

Ratio Decidendi: Abatement under Rule 96ZO(2) can be claimed only on strict compliance with all prescribed conditions, and failure to furnish the required meter readings defeats the claim.

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