Rule 173L refund for reprocessed goods upheld where D-3 intimations and procedural compliance were shown.

Refund of duty on goods sent back for reprocessing was treated as sustainable where the manufacturer complied with Rule 173L procedures and filed the required D-3 intimations. The revenue's objection was limited to an alleged failure to correlate the goods originally cleared on duty with the goods cleared after reprocessing, but no effective challenge was made to the procedural compliance accepted by the Commissioner (Appeals). On that factual footing, the order found no infirmity in allowing the refund, and the revenue's challenge failed.

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Issues: Whether refund of duty on goods received back for reprocessing was sustainable when the revenue could not establish lack of correlation between the originally cleared goods and the reprocessed goods.

Analysis: The order records a factual finding that the respondents had followed the procedure under Rule 173L of the Central Excise Rules and had filed the requisite D-3 intimations for receipt of the goods for reprocessing. The revenue's objection was confined to alleged absence of correlation between the goods originally cleared on payment of duty and the goods cleared after reprocessing. As the impugned order had considered the relevant material and there was no effective challenge to the D-3 intimations or the procedural compliance found by the Commissioner (Appeals), no infirmity was shown in allowing the refund.

Conclusion: The refund was upheld and the revenue's challenge failed.

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