Interpretation of the word 'Remade' used in Rules 173H and 173L - Central Excise - 2/87

Interpretation of the word 'Remade' used in Rules 173H and 173L Circular No. 2/87 Dated 7-1-1987 [From F. No. 210/15/86-CX. 6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Interpretation of the word 'Remade' used in Rules 173H and 173L The following opinion of the Ministry of Law has been accepted by the Board and the same may be brought to the notice of the field formations. "As per Rule 173H of the Central Excise Rules, 1944, the assessee may subject to the conditions specified by the Collector retain in or bring into his factory or warehouse the duty paid goods for being 'remade'. As per sub-rule (2) of the said rule, the aforesaid goods in question may be cleared again from the factory or warehouse without payment of duty subject to the condition that any process not amounting to manufacturing was involved in remaking them. Thus, it becomes clear from the language of the aforesaid sub-rule that the meaning attached to the word 'remade' as used in this rule does not amount to re-manufacture. Now, we come to Rule 173L of the said rules which provides for refund of the duty paid on goods which are returned to the factory for being 'remade'. The excisable goods can be cleared from the factory only by paying the duty payable on them and the goods can be excisable only when manufacturing process is involved in their production. If the goods are returned to the factory under this rule, the same can be cleared again by paying the duty payable. It means the goods in question have gone under process of manufacturing which were returned for being 'remade'. Thus, the meaning attached to the word 'remade' as used in this rule amounts to remanufacture.