Refund under Rule 173L allowed where loose-cleared aluminium circles were returned unchanged and the exemption notification applied generally.

Refund under Rule 173L was not barred where aluminium circles were cleared in loose condition and returned in the same condition, because Rule 173L(3)(i) targets goods received back in opened packages and did not apply on these facts. Notification No. 43/75-CE was treated as prescribing a concessional duty rate for aluminium circles generally, not as creating any separate concession confined to the small scale or cottage sector. On that basis, the refund claim was maintainable and relief under Rule 173L was available.

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Issues: Whether refund under Rule 173L of the Central Excise Rules, 1944 was barred by Rule 173L(3)(i) when the aluminium circles had been cleared in loose condition and returned in the same condition, and whether Notification No. 43/75-CE dated 1-3-1975 affected the respondent's entitlement to refund.

Analysis: The returned goods were not received back in opened packages; they had originally been cleared in loose condition and came back in the same condition. The exemption notification prescribed a concessional rate of duty for aluminium circles generally and did not create any further special concession limited to the small scale or cottage sector. On these facts, Rule 173L(3)(i) did not operate to deny refund.

Conclusion: The refund claim was not barred, and the respondent was entitled to the relief under Rule 173L.

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