Strict compliance with closure intimation requirements governs abatement claims under the compounding scheme.

Abatement under the compounding scheme was available only on strict compliance with the prescribed conditions, including timely written intimation of closure and recommencement of production. Because the factory was closed just before midnight on the relevant date but the closure intimation was sent the next day, the condition for claiming abatement for that day was not satisfied. The delayed intimation therefore defeated the claim for the disputed day, and the disallowance of that portion was upheld.

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Issues: Whether the assessee was entitled to abatement for the period in question despite giving the mandatory intimation of closure one day late under the compounding scheme.

Analysis: The abatement under the compounding provisions was available only on fulfilment of the prescribed conditions, including timely written intimation of closure and recommencement of production. The Court found that in each instance the factory had been closed just before midnight of the relevant date, but the intimation was sent on the next day. On those facts, the condition attached to the claim was not satisfied for the day in question.

Conclusion: The assessee was not entitled to abatement for the delayed day, and the disallowance of that portion of the claim was upheld.

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