Rule 16 — Quantification of abatement amount

16. Quantification of abatement amount. - The amount of abatement for a month shall be calculated using the following formula: 𝐶 𝐴 =( )×𝐷 𝑁 Where: A = Amount of Abatement claimed C = Total Cess liability for the machine for the month N = Total number of days in the month D = Total number of continuous days the machine was inoperative in the month I LLUSTRATION 1: A REGISTERED PERSON IS ENGAGED IN THE MANUFACTURE OF SPECIFIED GOODS USING A HIGH - SPEED POUCH PACKING MACHINE WITH A PACKING SPEED OF 700 POUCHES OF 2.5 GRAMS PER MINUTE . T HE MONTHLY CESS LIABILITY FOR SUCH A MACHINE UNDER S L . N O . 2 OF S CHEDULE II OF THE A CT IS ₹ 2,02,00,000. T HE MACHINE REMAINS INOPERATIVE AND SEALED FROM THE 1 ST DAY OF S EPTEMBER TO THE 19 TH DAY OF S EPTEMBER ( BOTH DAYS INCLUSIVE ), AND THE MACHINE IS DE - SEALED ON THE 20 TH DAY OF S EPTEMBER . T HE APPLICATION FOR CLAIMING ABATEMENT MAY BE FILED BY THE REGISTERED PERSON BY 20 TH O CTOBER ( THE MONTH SUCCEEDING THE MONTH IN WHICH THE MACHINE WAS INOPERATIVE AND SEALED ). The amount of abatement of cess shall be calculated as follows: — (i) Particulars of non-operation: Total number of days in the month (September) (N): 30 Number of continuous days the machine was inoperative (D): 19 Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000 (ii) Computation of Abatement Amount (A): 2,02,00,000 A=( ) × 19 = ₹ 1,27,93,333 [भाग II—खण्ड 3(i)] भारत का रािपत्र : असाधारण 37 (iii) Adjustment: The amount of ₹ 1,27,93,333 shall be allowed as an abatement by the proper officer in the order issued in say, October. The same shall be adjusted against the cess liability for November by the registered person. I LLUSTRATION 2: A REGISTERED PERSON IS ENGAGED IN THE MANUFACTURE OF SPECIFIED GOODS USING A HIGH - SPEED POUCH PACKING MACHINE WITH A PACKING SPEED OF 700 POUCHES OF 2.5 GRAMS PER MINUTE . T HE MONTHLY CESS LIABILITY FOR SUCH A MACHINE UNDER S L . N O . 2 OF S CHEDULE II OF THE A CT IS ₹ 2,02,00,000. T HE MACHINE IS SEALED ON THE 20 TH DAY OF J ULY AND IS DESEALED ON THE 11 TH DAY OF A UGUST . T HE TOTAL PERIOD OF CONTINUOUS NON - OPERATION IS 21 DAYS ( EXCEEDING FIFTEEN DAYS ). T HE APPLICATION FOR CLAIMING ABATEMENT MAY BE FILED BY THE REGISTERED PERSON BY 20 TH S EPTEMBER ( THE MONTH SUCCEEDING THE MONTH IN WHICH THE MACHINES WERE INOPERATIVE AND SEALED ). The amount of abatement of cess shall be calculated as follows: — (i) Particulars of non-operation for July: Total number of days in the month (July) (N): 31 Number of continuous days in the month the machine was inoperative (D): 11 Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000 (ii) Computation of Abatement Amount for July(A1): 2,02,00,000 A1 = ( ) × 11 = ₹ 71,67,742 (iii) Particulars of non-operation for August: Total number of days in the month (August) (N): 31 Number of continuous days in the month the machine was inoperative (D): 10 Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000 (iv) Computation of Abatement Amount for August(A2): 2,02,00,000 A2 = ( ) × 10 = ₹ 65,16,129 (v) Adjustment: The amount of ₹ 1,36,83,871 (A1+A2) shall be allowed as an abatement by the proper officer in the order issued in say, October. The same shall be adjusted against the cess liability for November by the registered person.