9911796707
TMI Blog2001 (12) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... se Rules, 1944 also). Re-entry is allowed subject to the conditions that the duty paid goods require further processing. Central Excise duty is charged not on sales but on manufacture. Duty is paid at the time of clearances. The return of duty paid goods does not give rise to refund automatically. Amount of duty charged on reprocessed/remade goods is sought to be set off to the extent of duty originally paid on the same goods under Rule 173L. Rule 173L facilitates the collection of duty on the value addition made on the goods received for being remade, refined, re-conditioned etc. It also provides for re-assessment of duty on the goods cleared after remaking, refined, re-conditioned otherwise duty would be seen to have been discharged twice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y-two thousand eight hundred forty-eight) was sanctioned by the Deputy Commissioner. This order of the Deputy Commissioner was reviewd and an appeal against the order of the Deputy Commissioner was filed by the Revenue before the Commissioner (Appeals). Commissioner (Appeals) after examining the facts and the case-law on the subject ordered as indicated in the preceding paragraph. 3. Arguing the case for the appellants Shri R. Krishnan, learned Counsel submits that the learned Commissioner (Appeals) relied on the decision of the Single Member Bench of this Tribunal in the case of Enzo Chem Laboratories (P) Ltd. v. C.C.E., Aurangabad reported in 1999 (113) E.L.T. 303 (T). He submits that this order was contrary to the order of a Division B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king etc. The learned Commissioner (Appeals) also observed that Single Member Bench of the Tribunal in the case of Enzo Chem Laboratories cited above has held that duty leviable is nil in respect of the goods exported and since duty leviable in the instant case was nil, therefore, refund was not admissible in the present case.This contention of the Department is attractive but does not appear to be legal. In the circumstancs of the case I note that two operations are involved. The first operation is that the duty paid goods cleared earlier was received back. This is the first operation. The second operation is that these goods were exported under bond. I find that the moment duty paid goods are returned to the factory of the manufacture for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not duty paid. Shri Deepak Kumar agreed that the goods were duty paid. On a query, he also confirmed that the procedure for receipt of the duty paid goods has been complied with and the goods have been taken for processing accordingly and these processed goods were subsequently removed under AR-3 procedure, at Nil rate of duty. 5A. After obtaining this clarification, we did not call upon Shri Phadnis to argue. Sub-rule (1) of Rule 173L reads as follows : 'The Collector may grant refund of the duty paid on manufactured excisable goods issued for home consumption from a factory, which are returned to the same or any other factory for being re-made, refined, reconditioned or subjected to any other similar process in the factory.' P ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
