Strict compliance with closure intimation requirements governs abatement under the compounded levy scheme; later curing of defects is ineffective.

Abatement of duty under the compounded levy scheme depended on strict compliance with the prescribed closure and restart procedure, including timely intimation of shutdown, immediate production of electricity meter readings and stock position, and prompt notice of recommencement. Failure to furnish the meter reading and closure intimation on the date of closure could not be cured later, so abatement was denied for the first closure period. Where the record showed that restart intimation, meter reading and closing stock were sent on the date production resumed, and the departmental stamp supported same-day receipt, the contrary finding of delayed receipt was ? No, removed. Abatement was therefore admissible for that later period.

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Issues: Whether abatement of duty under Rule 96ZO(2)(b) was admissible for the periods during which the factory remained closed, where the required intimations and meter readings were not furnished on the dates prescribed.

Analysis: Abatement under the compounded levy scheme was conditional upon compliance with the statutory procedure, including timely intimation of closure, immediate furnishing of electricity meter reading and stock position when production stopped, and similar intimation when production restarted. The subsequent submission of the meter reading could not cure the failure to intimate it on the date of closure, so the procedural requirement for that closure period was not satisfied. However, for the later period, the record showed that the intimation of recommencement was sent on the date of restart itself, together with the meter reading and closing stock, and the departmental stamp supported receipt on that date. The contrary finding that the intimation was received much later was therefore incorrect.

Conclusion: Abatement was rightly denied for the period 16-1-1998 to 31-1-1998, but was admissible for the period 20-2-1998 to 27-2-1998. The assessee succeeded only in part.

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