Rule 173L refund is capped by duty on reprocessed goods, so full exemption at second clearance leaves no refundable amount.

Refund under Rule 173L was limited by the duty payable on the returned goods after they were remade or otherwise reprocessed. Where the reprocessed goods were cleared under a full exemption and no duty was payable on the second clearance, the refund ceiling became nil. As a result, no refund was admissible despite duty having been paid on the original clearance.

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Issues: Whether refund under Rule 173L was admissible in full when goods, after being returned and reprocessed, were cleared without duty under an exemption notification.

Analysis: The refund provision limited the amount payable to the duty payable on the goods after they were remade, refined, reconditioned, or otherwise similarly processed. The ceiling operated by reference to the duty payable on the second clearance, not by reference to the duty originally paid on the first clearance. Where the reprocessed goods enjoyed full exemption and the duty payable on the second clearance was nil, the permissible refund was also nil.

Conclusion: Refund was not admissible, as the exemption on the reprocessed goods reduced the duty payable to zero and therefore eliminated any refundable amount.

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