Factory closure abatement must be reckoned from shift start; adjustment and ex parte decision were set aside on remand.

Abatement for factory closure had to be reckoned from the commencement of the factory shift, and the order limiting abatement to seven days was unsustainable where the closure period ran from 24-12-1998 0800 hours to 1-1-1999 1100 hours with prior notice and sealing of the stenter machine. Adjustment of the abatement amount against duty liability was also improper because the capacity-determination order on which that adjustment was based had already been set aside. As the impugned order was passed without affording personal hearing, it was contrary to natural justice. The matter was set aside and remanded to the Commissioner for fresh decision after giving reasonable opportunity of hearing.

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Issues: Whether the order restricting abatement to seven days and adjusting the abatement amount against duty liability was sustainable, and whether the matter required remand for fresh decision after hearing the assessee.

Analysis: The closure period was shown as running from 24-12-1998/0800 hours to 1-1-1999/1100 hours, with prior notice given and the stenter machine sealed and later de-sealed within that span. The Tribunal noted that the reckoning of closure had to be made from the commencement of the factory shift, and also took note that the capacity-determination order against which the abatement amount had been adjusted had already been set aside. Since the impugned order had been passed without affording personal hearing, the order was found to be contrary to natural justice.

Conclusion: The order was set aside and the matter was remanded to the Commissioner for fresh decision after granting reasonable opportunity of personal hearing. The assessee succeeded to the extent of obtaining remand.

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