Refund on returned goods turned on initial clearance duty, while duty on re-issue without manufacture was not payable.

Returned goods re-issued without any process amounting to manufacture did not attract duty on the subsequent clearance, and any duty collected on that re-issue was refundable. The refund claim, however, was directed at duty paid on the initial clearance, which had been properly levied in accordance with law. Because the claim failed on merits, limitation did not survive as a live issue. The refund was therefore not admissible on the basis claimed.

---

---

Issues: Whether refund of duty paid on the initial clearance of returned goods was admissible, and whether the claim could be sustained on limitation.

Analysis: The goods were brought back after earlier clearance on payment of duty and were re-issued without any process amounting to manufacture. On the facts, the subsequent clearance did not attract duty, and any duty collected on re-issue was refundable. However, the refund claim before the original authority was not for that amount; it was for duty paid on the initial clearance, which was itself proper and in accordance with law. Once the claim failed on merits, the question of limitation did not survive for determination.

Conclusion: The refund claim was not admissible on merits and the Revenue's appeal succeeded.

---