2008 (4) TMI 660

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....lant. Shri Sameer Chitkara, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. -  After hearing both sides duly represented by Shri P.M. Dave, the learned advocate appearing for the appellant and Shri Sameer Chitkara, the learned SDR and after going through the impugned order, we find that the appellant was engaged in the manufacture of MS Plate falling under Chapter ....

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....ording to the said rule after opting for the same, the show cause notices were issued to the assessee for recovery of duty amount of Rs. 4,66,500/- for the period April 1998 to March 1999. The appellant claimed abatement for the period of closure from 1-5-1998 to 14-5-1998; 26-9-1998 to 18-6-1998; and for the period 9-7-98 onwards. The Commissioner, in his impugned order, has held that when the ap....

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....y, the bank took over the unit and sold the same to other party. As such, he submits that their unit was closed w.e.f. 1-7-1998 onwards and was never revived thereafter, in which case, their liability to pay the duty would not arise. On the other hand, the Revenue's contention is that once they have opted for payment of duty in terms of Rule 96ZP(3), the appellants cannot opt out of the same and t....

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.... there is no answer to the same. We, however, feel that when the factory is fully closed, the same amounts to the extinguishing the very existence of the factory and virtual death, no duty liability can be fixed on the said unit. The claim of the abatement provided under law (though not under Rule 96ZP(3) but under other provisions of said rule), are for a situation where the factory is temporaril....