Abatement of duty allowed where machine was sealed by officers and prior closure notice was not reasonably possible.

Abatement of duty under the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 was considered admissible where the packing machine was sealed by Central Excise officers immediately after the notification came into force. The rule required seven days' prior intimation before intended closure for abatement on account of non-production, but such notice could not reasonably be given before a closure caused by departmental sealing. As the machine remained unused for the relevant period and the closure was not voluntary, denial of abatement was not justified.

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Issues: Whether abatement of duty was admissible for the period during which the packing machine remained sealed by Central Excise officers, despite the absence of prior intimation of closure.

Analysis: The notification governing the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 required intimation seven days before the intended closure for claiming abatement on account of non-production. Here, the notification came into force on 01.07.2008 and the machine was sealed by the officers on 02.07.2008. In such circumstances, prior intimation of non-manufacture could not reasonably have been given before closure. The closure was not voluntary but resulted from sealing by the departmental officers, and the record did not dispute that the machine remained unused for the relevant period.

Conclusion: Abatement of duty was allowable and the denial of abatement was not justified.

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