https://www.taxtmi.com/caselaws?id=340703 Forced closure of a factory due to statutory directions, with power and water disconnected and machinery dismantled, could not be treated as failure to avail the special procedure under Notification No. 17/2007-CE. CESTAT held that involuntary non-operation did not amount to opting out of the fixed duty scheme, and the notification could not override the substantive rule that excise duty arises only on manufacture or production. On that basis, the demand for differential duty was unsustainable. As the alleged breach of the notification procedure was not established, the basis for penalty under Rule 25 of the Central Excise Rules, 2002 also failed. en-us Fri, 17 Feb 2017 00:00:00 +0530 Fri, 09 Sep 2022 14:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340703 Forced closure of a factory due to statutory directions, with power and water disconnected and machinery dismantled, could not be treated as failure to avail the special procedure under Notification No. 17/2007-CE. CESTAT held that involuntary non-operation did not amount to opting out of the fixed duty scheme, and the notification could not override the substantive rule that excise duty arises only on manufacture or production. On that basis, the demand for differential duty was unsustainable. As the alleged breach of the notification procedure was not established, the basis for penalty under Rule 25 of the Central Excise Rules, 2002 also failed. Case-Laws Central Excise Fri, 17 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340703