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2014 (8) TMI 612 - HC - Central ExciseDenial of refund claim - double payment of duty on returned and repaired goods - Whether the Tribunal was right in rejecting the refund claim on the ground that the goods in respect of which refund was claimed was disposed off in any manner, then the production of goods of the same class, ignoring the fact that the goods cleared from the factory before repair and after are machineries only - Held that:- It is not in dispute that the goods originally cleared was circular knitting machine falling under sub-heading 8447.00 on which duty was paid. However, on the complaint, the defective parts viz., knitting head assembly and take down drive assembly which falls under sub-heading 8448.90, were returned and similar parts were supplied as replacement. The parts supplied as replacement suffered separate duty. The defective parts returned to the supplier was reconditioned and fitted in an another circular knitting machine and was supplied to another purchaser on which duty was paid. Since the defective parts returned for being reconditioned and subjected to similar process of manufacturing, the assessee claimed refund of duty under sub clause (1) of Rule 173 L. However, proviso (3)(iii) to Rule 173 L would stipulate that the goods (parts) disposed or re-used should be on the production of the goods of same class. What has been returned is not the goods falling under sub-heading 8447.00 of the CETA Schedule, but falling under sub-heading 8448.90 of the CETA Schedule. We find Chapter 84 - Machinery, mechanical appliances and parts thereof, sub-heading 84.48 provides for parts and accessories suitable for use, solely or principally with the machines of this heading or of Heading No.84.44, 84.45, 84.46 or 84.47 (for example, spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald-frames, hosiery needles), 8448.90 - parts. In this case, the goods which have been returned are admittedly fall under 8448.90 parts under separate tariff heading and unless such goods are disposed of in the manner and used for the production of the goods of same class, the question of refund of duty will not arise. - Decided against assessee.
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