2001 (11) TMI 351

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....ion furnace unit at Lalton Kalan and manufacturing, among others, non-alloy steel ingots/billets which were chargeable to duty upto 31-3-2000 in terms of Section 3A of the Central Excise Act, 1944 read with Notification No. 30/97-C.E., dated 1-8-97 according to the annual production capacity of the unit. The assessee claimed abatement for the period 23-8-97 to 18-9-97 and 24-10-97 to 12-11-97 under sub-section 3 of Section 3A of Central Excise Act, 1944 read with Rule 96ZO(2) of Central Excise Rules, 1944. Department proposed to reject the assessee's claim for two reasons, namely, (1) they had not filed any declaration as required under Rule 96ZO(2)(e) of the Central Excise Rules, 1944 in respect of abatement claim for the period 23-8-97 to....

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.... at the time of starting of production was 1867.05 and the stock of steel ingots was 157 pieces. It was also mentioned that the factory remained closed for a continuous period from 13.05 Hrs. on 24-10-97 to 8 AM on 12-11-97. 4. Before we examine the allegation that the assessee has not complied with the rules in giving declaration in order to be eligible for abatement, we will refer to the relevant rules : "(i) 96ZO(2)(b) "The manufacturer shall intimate the reading of the electricity meter to the Assistant Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, immediately after the production in his factory is stopped along with the closing balance of stock of the ingots and billets of non-allo....

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....hould be referred in the intimation. Such intimation is required to be given under 96ZO(2)(d) along with the communication regarding restarting the production. A reading of the communication dated 18-9-97 would show that the assessee has failed to refer to the closing balance of stock on the day of restarting the production, even though he has mentioned the meter reading. When the assessee wants to take the benefit of the rule and seek abatement on that basis, it is mandatory on its part to comply with the rules atleast the essential requirements under the rules. It is submitted by both sides before us that the scheme for granting abatement as above came into force only from 1-9-97. Therefore, the claim of the assessee for this period is li....