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TMI Blog1990 (11) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... e was duly followed and there is no dispute about the facts. 3. The only question involved is as to whether the entire amount of refund due claimed by them on the entire quantity of goods brought back was required to be payable or the refund was required to be restricted to lesser amount sanctioned by the department. 4. Out of 101 cartons brought back after re-processing the total number of cartons of good quality came to be 94 and the goods equivalent to remaining 7 cartons could only be considered as waste after reprocessing. The dispute is regarding this waste which has arisen out of re-processing of damaged yarn which was returned. 5. It was their contention that in terms of Rule 97 the refund of entire duty paid on 101 cartons wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it does not fall in the same class to which the original goods belonged, and would be required to pay the duty at a different rate if cleared. 11. The learned SDR further stated that in fact subsequently the Rule had been amended on 1-9-1988 vide notification number 24/88 to clarify the intention of the proviso 9. Hence the refund was required to be restricted to the amount of duty paid on the goods of the same class which have finally emerged after reprocessing and the department is not concerned with the loss during processing or resultant waste. 12. The learned counsel stated that this amendment is not applicable to the instant case as the present case belongs to the period of 1985, whereas the amendment has come in 1988 and has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraph (except proviso 9) also refer only to the returned goods themselves and not to the products of processing. 16. Proviso 9 also refers to the returned goods but stipulates that no refund should be admissible in respect of the duty paid on goods which are disposed of in any manner other than for production of goods of the same classes. It does not distinguish between the prime quality material and waste but merely refers to the goods of the same classes. 17. It is significant that here the word classes has been used and there is no reference to any particular item or sub-item of the tariff. Therefore till the returned goods are used for the manufacture of the same type of goods which were originally issued, the returned goods woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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