R.S. INDUSTRIES (RM) LTD. Vs. CCE

JUDGEMENT

(1.) THE relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Non -Alloy Steel Ingots classifiable under sub -heading No. 7206.90 of the Schedule to the Central Excise Tariff Act, 1985. The dispute relates to claim of abatement during the period 1998 -1999 and 1999 -2000. The appellants paid duty under Compounded Levy Scheme under Section 3A of the Central Excise Act, 1944 read with Rule 96ZO of the erstwhile Central Excise Rules, 1994. The appellants claimed abatement of duty for 420 days. The Original Authority allowed the claim for 412 days. He has denied the abatement for 8 days for the reason that in the case of Saturday/Sundays and holidays the intimations were sent through telegram. The Commissioner (Appeals) upheld the Adjudication Order.

(2.) LD . Advocate on behalf of the appellants submits that in six occasions during the two financial years, they sent telegram on Saturday/Sunday and holidays and they filed the claim in writing on the next working days. She submits that vide Trade Notice No. 31 -CE/99 dated 10.09.99 issued by the Commissioner of Central Excise, Chandigarh -I, allowed intimation given by telegram for the holidays. She further submits that the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise v. Vimal Alloys Ltd. reported in, 2006 (205) ELT 80 (P&H) held this issue in favour of the assessee.

(3.) AFTER hearing both the sides and on perusal of the records, I find that in the year 1998 -99 and 1999 -2000, on six occasions, they had given intimation through telegram for closure of furnace on Saturdays/Sundays and holidays and intimation in writing was submitted on the next working day. Abatement was allowed from next working day except Saturday/Sunday and holidays. The Commissioner (Appeals) observed that the date of the submission of the telegram by the appellant to Postal Department cannot be treated as the date of information to the Department. By Trade Notice No. 31 -CE/99 dated 10.09.99, the Commissioner of Central Excise, Chandigarh -I clarified that in the case of closure scheduled for Saturdays/Sundays and holidays, where prior information could not be given, the party should inform the R.O., Divisional AC and the Commissioner by telegram on next date itself, giving all the details as required under the Rules. The Tribunal in the case of Vimal Alloys Ltd. v. Collector of Central Excise, Chandigarh : 2002 (150) ELT 318 (Tribunal -Delhi) held that intimation of closure on public holidays was received on the next working days, abatement of duty cannot be denied. It is seen that the Hon'ble Punjab & Haryana High Court upheld the decision of the Tribunal in the case of CCE v. Vimal Alloys Ltd. as reported in, 2006 (205) ELT 80 (P&H). In the present case, there is no dispute that the appellant had intimated the Department through telegram about the closure of furnace on Saturdays/Sundays and holidays and also filed the intimation in writing on the next working day. It is noted that the Department allowed the claim of abatement from the next working day. Therefore, claim of abatement for Saturdays/Sundays and holidays sent through telegram are liable to be accepted. Accordingly, the impugned order is set aside and the appeal is allowed with consequential relief.