Refund under Rule 173L requires proof that returned goods are the same goods earlier cleared and that quantities correlate

Refund under Rule 173L of the Central Excise Rules, 1944 is not dependent on proof that goods were rejected by the buyer, but the claimant must show that the goods received back in the factory were the same goods earlier cleared and returned for remaking, refining, reconditioning or a similar process. The record must also establish a clear correlation between quantities cleared and quantities received. Where supporting material from buyers is absent and the matching of quantities is not demonstrated, the refund claim fails for want of identity and correlation of the returned goods.

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Issues: Whether refund under Rule 173L of the Central Excise Rules, 1944 could be granted without proof that the returned goods were the same goods earlier cleared and whether the requisite correlation between quantities cleared and received was established.

Analysis: Rule 173L does not require proof that the goods were rejected by the buyer; it applies where goods are received in the factory or another factory for remaking, refining, reconditioning, or a similar process. However, the claimant must establish that the goods received were the very goods earlier cleared and returned. The record did not satisfactorily show such correlation, particularly in the absence of supporting material from the buyers, and the quantities received and cleared were not shown to match.

Conclusion: The refund claim failed for want of proof of identity and correlation of the returned goods, and the refusal to interfere was justified.

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