2008 (8) TMI 742 - AT - Central Excise

Summary

Issues:
Refund claim rejection under Rule 173L of Central Excise Rules for duty paid goods returned to the factory and not reprocessed.

Analysis:
The appellant, engaged in cement manufacturing, filed an appeal against the rejection of their refund claim under Rule 173L of Central Excise Rules. The dispute arose when a consignment of cement cleared from one factory was rejected by customers and received back at another factory of the appellant. The appellant argued that since the duty paid goods were received in the factory and reprocessed, they were entitled to a refund. However, the revenue contended that the goods were not reprocessed at the receiving factory, leading to the rejection of the refund claim.

The relevant provision, Rule 173L of Central Excise Rules, allows for a refund of duty paid on excisable goods returned to the factory for re-making, refining, or similar processes. The rule specifies conditions such as the goods being returned within a specified period, providing information to the proper officer, storing goods separately, and refund amount not exceeding the duty payable after processing. The appellant failed to meet the requirement of reprocessing the goods at the receiving factory, as evidenced by a letter seeking permission to clear the same quantity from another unit.

The Tribunal found no merit in the appellant's argument as the returned goods were not reprocessed at the receiving factory, as per the letter to the Collector of Central Excise. Consequently, the impugned order rejecting the refund claim was upheld, and the appeal was dismissed. The judgment highlights the importance of complying with the specific provisions of Rule 173L to claim a refund on duty paid goods returned to the factory for processing.