2004 (4) TMI 429

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....ing four refund claims of the assessee under Rule 173L of the Central Excise Rules, 1944. 2. The appellants are engaged in the manufacture of various types of Gaskets falling under Chapters 40, 45, 48, 68 and 84 of the CETA Schedule. They are also availing Cenvat credit on inputs and capital goods. During the relevant periods, the appellants had cleared Gaskets on payment of duty to their customers, but the latter did not accept the goods as they had stopped production of the final products for which the gaskets were required. As a matter of fact, the goods sent by the appellants had never entered the customers' premises and were returned to the appellants from the transporters' godowns situate in the respective buyers' towns. The r....

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....een reprocessed and removed within 6 months of receipt for preparation of gasket sets. Such removal of the goods within the appellants' factory was made on payment of duty. The relevant invoices evidenced the payment of duty. Double payment of duty on the same goods was a fact not rebutted by any of the lower authorities. In the circumstances, the duty originally paid on the goods was liable to be refunded in terms of Rule 173L. Counsel relied on certain decisions of the Tribunal in support of this argument. He also sought to distinguish the decisions relied on by the lower appellate authority. The DR reiterated the findings of the Commissioner (Appeals). 4. I have carefully considered the submissions. The proposal in the show cause....

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....the duty originally paid on the gaskets was liable to be sanctioned under Rule 173L. The DR has countered this argument by submitting that a case of captive consumption of final product returned by the buyer was not covered under Rule 173L. 5. Rule 173L (1) reads as under :- "The Commissioner may grant refund of the duty paid on manufactured excisable goods issued for home consumption from a factory, which are returned to the same or any other factory for being re-made, refined, reconditioned or subjected to any other similar process in the factory." The proviso to the above sub-rule prescribed a period for the goods to be returned to the assessee's (refund claimant's) factory. In the instant case, the returned gaskets were ad....