Returned excisable goods and refund under Rule 173L depend on the actual processing done, not only complete remanufacture.

Returned excisable goods may qualify for refund treatment under Rule 173L even where the work done on them involves dismantling, replacement of parts, welding, grinding and touch-up painting, if those processes fall within the return-and-remaking scheme read with Rule 173H(3). The refund cannot be denied or recovered merely on the assumption that only complete remanufacture qualifies. The principle against double taxation also applies, so goods that have already suffered duty should not be subjected to excise duty twice through recovery of an earlier refund.

---

---

Issues: Whether the refund earlier granted under Rule 173L of the Central Excise Rules, 1944 could be recovered under Section 11A of the Central Excises and Salt Act, 1944 on the ground that the returned goods were not subjected to re-making or manufacture, and whether the processes undertaken on the returned goods fell within Rule 173L.

Analysis: The returned buckets had undergone dismantling, removal and replacement of parts, welding, grinding and touch-up painting. The recovery action proceeded on the footing that these activities did not amount to remaking or manufacture. The governing scheme required Rule 173L to be read with Rule 173H(3), and the objection could not stand merely because the goods were not remanufactured. The process adopted on the returned goods was treated as sufficient for Rule 173L, and the authority also relied on the principle that excise duty cannot be levied twice on the same goods.

Conclusion: The recovery of the refund was unsustainable, and the earlier refund could not be demanded back.

Final Conclusion: The appeal succeeded and the impugned order was set aside with consequential relief.

Ratio Decidendi: Where returned excisable goods undergo processes falling within the refund-return scheme and have already suffered duty, refund cannot be denied or recovered on an erroneous assumption that only remanufacture qualifies, and the same goods cannot be subjected to excise duty twice.

---