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TMI Blog1991 (8) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... king, they cleared cigarettes of different brands. Hence, their refund claim under Rule 97 in respect of a sum of Rs. 26,722.74 was rejected on the ground that the goods brought in were not utilised in the remaking of the same class of goods. The Collector (Appeals) confirmed the Asstt. Collector s order of rejection and rejected the appellants appeal. Hence, the present appeal is before the Tribunal. 3. It is the contention of the learned advocate, Shri Dharuwalla that cigarettes form a class. It is not disputed by the Department that damaged cigarettes brought in were refined and remade into cigarettes only. It is not necessary that the cigarettes remade should only be of the same brand. The different brands of cigarettes belong to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciating the equally attractive arguments from either side, it would be necessary to go into greater detail the provisions of Rule 97. Rule 97 envisages grant of refund of duty paid on the goods issued for home consumption from a factory and which are returned to the factory for being remade, refined, reconditioned or subjected to any other similar process in the factory, subject to compliance with the conditions laid down in the proviso. There are many conditions set out. The area of dispute in the present appeal is only confined to the provision namely: No refund shall be admissible in respect of duty paid - on goods which are disposed of in any manner other than for production of goods of the same class. [emphasis supplied] For a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er similar processes would seem to cover such operations as well. This is evident from the safety clause provided in the Rule itself. That is the provision which restricts the amount of refund payable to the duty payable on such goods after being remade, refined etc. Hence, consequent on remaking, if the value depreciates, resulting in lower duty than the duty earlier paid, refund shall be restricted to the lower duty payable on such remade goods. In the context of these provisions, the term same class referred to in Rule 97, can only mean the class of goods recognised in the tariff classification for purposes of levy of duty. Even if value changes on account of remaking or refining, because of change in brand, they would remain in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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