Rule 173L refund applies to reconditioned returned goods exported under bond after demonstration use.

Returned excisable goods that had been cleared on duty payment, demonstrated, reconditioned and exported under bond were treated as falling within Rule 173L. The processes applied to the vehicles, including engine retuning, touch-up painting, gear-box reconditioning, battery charging and brake retesting, were regarded as reconditioning or a similar process for the rule's purposes. As no separate non-compliance with the rule's conditions was shown, the refund claim was stated to be entertainable and allowable in accordance with law.

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Issues: Whether goods cleared on payment of duty and later returned to the factory after demonstration, when reconditioned and exported under bond, were covered by Rule 173L so as to entitle the assessee to refund of duty.

Analysis: Rule 173L permits refund of duty on manufactured excisable goods returned to the factory for being remade, refined, reconditioned or subjected to any other similar process. The processes undertaken on the returned vehicles, including retuning of engine, touch-up painting, reconditioning of gear boxes, charging of battery and retesting of brakes, amounted to reconditioning or a similar process within the rule. No separate dispute was shown regarding non-compliance with the conditions of the rule.

Conclusion: The refund claim fell within Rule 173L and was required to be entertained and allowed in accordance with law. The issue is decided in favour of the assessee.

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