Rule 173L refund denied where returned goods were found to have lower market value than the duty originally paid.

Refund under Rule 173L was held inadmissible where the returned goods were factually found, on market enquiry and supporting material, to be worth less than the duty originally paid at clearance. The lower authorities recorded that the goods received back were not saleable defective furniture but plastic scrap, and that a fresh valuation at the assessee's request confirmed a lower market value than the duty paid. Earlier cases were distinguished because they involved no evidence of reduced value. The refund claim was therefore rejected and that rejection was upheld.

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Issues: Whether refund under Rule 173L was admissible when the returned goods were found, on market enquiry, to be worth less than the duty originally paid at clearance.

Analysis: The refund claim was examined against the specific factual finding recorded by the lower authorities that the goods received back were not saleable defective furniture but plastic scrap, and that a fresh market survey conducted at the assessee's request placed their value below the duty paid at the time of original clearance. The prior decisions relied upon by the assessee were distinguished because they turned on the absence of any evidence that the returned goods were of lesser value than the duty paid, whereas here the valuation finding was supported by market enquiry and other material on record.

Conclusion: The refund claim was not admissible and the rejection of the claim was upheld against the assessee.

Ratio Decidendi: Refund under Rule 173L cannot be allowed where the returned goods are factually found to be of lesser value than the duty originally paid, and that finding is supported by market evidence.

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