Same class test under Rule 173L denied excise refund where the goods fell under different tariff headings.

Refund under Rule 173L of the Central Excise Rules, 1944 is available only when returned goods are used to produce goods of the same class. The term "class" was applied in its ordinary sense as goods belonging to the same group or sharing common characteristics, and prior treatment of goods under the same tariff item was noted as relevant. On the facts, chloracetamidoxime and chlordiazepoxide fell under different tariff headings, so they were not goods of the same class and refund was not admissible.

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Issues: Whether chloracetamidoxime and chlordiazepoxide are goods of the same class for the purpose of refund under Rule 173L of the Central Excise Rules, 1944.

Analysis: Refund under Rule 173L is available only where the returned goods are used for production of goods of the same class. The expression "class" was applied in its ordinary sense as denoting goods belonging to the same group or sharing common characteristics, and prior decisions had treated goods falling under the same tariff item as being of the same class. On the facts, the drug intermediate and the drug were classifiable under different tariff headings, and the earlier position under the tariff was no longer applicable.

Conclusion: Chloracetamidoxime and chlordiazepoxide are not goods of the same class, so refund was not admissible; the decision is against the assessee and in favour of the Revenue.

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