Same class under Rule 173L(3) includes returned and reprocessed goods in the same tariff item absent distinct characteristics.

For Rule 173L(3), goods returned to a factory and the reprocessed goods cleared later are treated as goods of the same class where they fall within the same tariff item and are not shown to have distinct characteristics. The expression "same class" is construed broadly by reference to ordinary meaning and shared attributes, and the absence of a statutory definition does not narrow that approach. On the facts discussed, both the returned crude copper phthalocyanine and the cleared product fell under the same tariff item, and no evidence established material difference. The refund claim was therefore admissible and the contrary view was unsustainable.

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Issues: Whether goods returned to the factory and the goods subsequently cleared after reprocessing fell within the "same class" so as to attract Rule 173L(3) and justify refund of duty.

Analysis: The scope of "class" or "same class" in Rule 173L(3)(iii) was not defined in the rules or the Act. The expression was construed broadly, with emphasis on the ordinary meaning of a group sharing the same attributes. Where the returned goods and the reprocessed goods fell within the same Tariff Item, they were treated as goods of the same class. On the admitted facts, both the returned crude copper phthalocyanine and the cleared product fell within TI 14D. No evidence was produced by the Department to show that they had different and distinct characteristics, and no adequate reason was given for holding otherwise.

Conclusion: The returned goods and the reprocessed goods were goods of the same class within Rule 173L(3), and the refund claim was admissible.

Final Conclusion: The order denying refund was unsustainable and the assessee's refund claim stood restored with consequential relief.

Ratio Decidendi: For the purpose of Rule 173L(3), goods falling within the same tariff item and not shown to be distinct in character are to be treated as goods of the same class.

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