Reconditioning of exhibition machines qualifies under Rule 173L where repairs restore them near post-manufacture condition.

Machines used for exhibition that were subsequently tested and repaired could amount to reconditioning where the work restored them to a condition nearly corresponding to their post-manufacture state. Mere testing alone does not constitute remaking or reconditioning, but removal of wear, tear and defects to make the machines fit for resale falls within Rule 173L. The benefit under the rule, including refund of duty, was therefore available for the reconditioned machines.

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Issues: Whether machines returned after exhibition and subsequent work carried out on them amounted to reconditioning within Rule 173L of the Central Excise Rules so as to qualify for the benefit of the notification and refund of duty.

Analysis: Testing alone does not constitute remaking, reconditioning or a similar process. A machine used for demonstration at an exhibition would ordinarily undergo wear and tear and defects would need to be removed before it can be sold again. A process that restores the machine to a condition nearly corresponding to its post-manufacture state is reconditioning. Such reconditioning is one of the processes contemplated by Rule 173L.

Conclusion: The machines used at the exhibition were reconditioned and the benefit under Rule 173L, with consequential refund of duty, was available in respect of them.

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