Factory-wide abatement under excise law fails where notified goods continue to be produced in other furnaces.

Abatement under the proviso to Section 3A(3) of the Central Excise Act is available only when a factory producing notified goods does not produce such goods for a continuous period of at least seven days. Although annual production capacity may be determined furnace-wise, the statutory test for abatement is factory-wide, not confined to one furnace. Where one furnace remained closed but other furnaces in the same factory continued producing notified goods during the relevant period, abatement on a furnace-wise basis was not admissible. The claim for abatement was therefore rejected and the denial upheld.

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Issues: Whether abatement of duty under the proviso to Section 3A(3) of the Central Excise Act was admissible furnace-wise when one furnace in the factory remained closed but the factory continued to produce notified goods in other furnaces.

Analysis: The proviso permits abatement only where a factory producing notified goods does not produce such goods during a continuous period of not less than seven days. The annual production capacity may be determined furnace-wise, but the statutory condition for abatement is expressed in terms of non-production by the factory. Since the factory continued to manufacture notified goods through its other furnaces during the relevant period, the claim for abatement could not be sustained on a furnace-wise basis.

Conclusion: The claim for abatement was not admissible; the denial of abatement was upheld.

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