Refund of excise duty on returned goods depends on proof of double payment and compliance with Rule 173H conditions.

Refund of central excise duty on returned goods under Rule 173H depends on proof that duty was paid twice and that the Rule's conditions for returned goods were complied with. The goods were accepted back into the factory, and duty was later paid again on subsequent clearances pursuant to departmental directions, but the record needed factual verification on whether double payment had occurred and whether the statutory requirements were met. The matter was remanded to the lower authority for that verification, and refund would follow only if both conditions were established.

---

---

Issues: Whether the appellant was entitled to refund of central excise duty allegedly paid twice on returned goods under Rule 173H of the Central Excise Rules, 1944, and whether the claim required verification of compliance with the conditions governing such returned goods.

Analysis: The goods had been returned to the factory and the revenue had accepted their re-entry. The duty was later paid again on subsequent clearances pursuant to departmental directions. On these facts, a refund could be granted only if it was established that duty had in fact been paid twice and that the conditions under Rule 173H were satisfied. The record required factual verification on these aspects.

Conclusion: The matter was remanded to the lower authority for verification of the twin conditions. If both were satisfied, the appellant would be entitled to refund.

---