Strict compliance with Rule 173L time limit governs refund on returned excisable goods; Section 11B cannot override it.

Refund of duty on excisable goods returned to the factory under Rule 173L was available only where the goods were received back within one year from payment of duty, or within an extended period granted on sufficient cause. As the disputed goods were returned after the one-year limit and no extension was shown, the refund claim was not admissible. Section 11B of the Central Excise Act could not be used to bypass the specific time condition in Rule 173L. The article thus affirms strict compliance with the rule as a prerequisite for refund on re-entered goods.

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Issues: Whether refund under Rule 173L of the Central Excise Rules, 1944 was admissible where the returned goods were received back in the factory after the expiry of one year from the date of payment of duty and without extension of time having been obtained from the proper officer.

Analysis: Rule 173L permits refund of duty on excisable goods returned to the factory for re-making, refining, reconditioning or similar processes only if the goods are returned within one year from the date of payment of duty, or within such further period as may be permitted on sufficient cause being shown. The goods covered by the disputed invoices were admittedly received back after the one-year period, and no permission extending the period was produced. Section 11B of the Central Excise Act, 1944 does not override the specific discipline of Rule 173L in respect of re-entered goods. The rule is intended to prevent double payment of duty, but that benefit is available only on compliance with its conditions.

Conclusion: The refund claim to the extent of the disputed amount was not admissible, and the rejection of refund was correct in law.

Final Conclusion: The appeal failed because the statutory conditions for refund on returned goods were not satisfied.

Ratio Decidendi: A refund claim under Rule 173L for duty-paid goods returned to the factory is maintainable only on strict compliance with the prescribed time limit or a duly granted extension, and Section 11B cannot be invoked to bypass that specific requirement.

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