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2013 (11) TMI 629 - JHARKHAND HIGH COURTGoods Returned as Defective – Input or Not as per Rule 57A - Whether as per Rule 173H and Rule 173L of the Central Excise Rules, 1944, remaking, refining, reconditioning, repairing or similar processes on defective goods returned to the manufacturer of the final product can be treated as an input for the purpose of Rule 57A of the Central Excise Rules, 1944 – Held that:- There is no restriction of bringing in the defective material in the factory on which the assessee has paid the excise duty at the time of removing those goods horn the factory - Once they have brought in the factory and if anybody wants to take benefit of refund of the duty because of the defects in the goods etc., then in that situation in stipulated period one can apply for the refund of the excise duty as provided by Rules 173H and 173L. Neither the Rules 173H nor 173L made any provision or had put any restriction that these goods which have been brought in the factory as defective goods cannot be used as input in the factory – Relying upon CCE, Merrut v. Bhushan Steel & Strips Ltd. [2000 (6) TMI 47 - CEGAT, NEW DELHI] - Revenue cannot dispute that the defective refractory bricks have been subjected to manufacturing and because of that reason only they have levied the excise duty for final product which have been made from the defective refractory bricks - there is no application for the Rules 173H and 173L – Decided against the revenue.
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