2003 (9) TMI 587 - AT - Central Excise

Refund - Return of duty paid goods - Words and Phrases - Clearance for home consumption - Exhibition

Summary

Issues:
1. Interpretation of Rule 173L regarding refund of duty on excisable goods returned for reprocessing.
2. Determination of whether recalibration of goods falls under Rule 173L.
3. Clarification on clearance for exhibition purposes not being considered clearance for home consumption.

Analysis:
1. The judgment pertains to an appeal filed by the Revenue against the Commissioner (Appeals) finding related to the refund of duty under Rule 173L for excisable goods returned for reprocessing. The Commissioner had held that the goods, after being cleared and brought back for calibration, were eligible for a refund under Rule 173L as the rule covers goods returned for re-making, reconditioning, or similar treatment. The Commissioner emphasized that any clearance outside the factory, except for export, is considered clearance for home consumption, thus justifying the refund. The Tribunal upheld the Commissioner's interpretation, stating that the recalibration of conductivity meters falls within the ambit of Rule 173L.

2. Regarding the second issue raised by the Revenue, the Tribunal dismissed the argument that clearance for exhibition purposes should not be considered clearance for home consumption. The Tribunal reasoned that any clearance within India, whether inside or outside the factory, is deemed a home clearance unless for export. The Tribunal found no evidence to suggest that the exhibition in question was held outside India. Therefore, the Tribunal rejected the Revenue's argument on this ground as well.

3. In conclusion, the Tribunal found no valid grounds to support the Revenue's appeal and subsequently dismissed it. The judgment reaffirms the application of Rule 173L for the refund of duty on excisable goods returned for specific treatments, such as recalibration, and clarifies that clearances within India, including for exhibition purposes, are considered clearances for home consumption unless intended for export.