TMI Blog2013 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 2000 (39) RLT 200 (CEGAT-LB) = 2000 (119) E.L.T. 293 (Tri.-LB) and another Larger Bench decision in the case of Hindalco Industries Ltd. v. CCE, Allahabad reported in 2000 (38) RLT 986 (CEGAT-LB) = 2000 (119) E.L.T. 711 (Tri.-LB) held that the assessee is entitled to MODVAT credit. The Tribunal in its impugned order dated 1-10-2003 also held, that brick manufactured from defective refractory bricks are new product as it has to undergo a process and thereafter new refractory bricks are manufactured and therefore, the revenue has levied the excise duty upon such final product which are said as the refractory bricks. 4. The contention of the learned counsel for the appellant is that there is specific provision in Rule 173H of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s factory or warehouse, excisable goods or parts thereof, accompanied by duty paying documents, if such goods or parts thereof, - (a) are required for use in the manufacture of other goods in the factory; or (b) are required in the factory for construction, repairs or for use as fittings or equipment or for any other purpose for which such goods are normally consumed; or (c) need to be re-made, refined, reconditioned, repaired or subjected to any similar process in the factory; or .. 8. The Rule 173L is as under : Refund of duty on goods returned to factory. - (1) The Collector may grant refund of the duty paid on manufactured excisable goods issued for home consumption from a factory, which are returned to the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st proviso, the following clause shall be substituted, namely :- (ii) the assessee gives information of the re-entry of each consignment of such excisable goods into the factory to the proper officer in writing in the proper form within twenty-four hours of such re-entry or within such further period not exceeding ten days, as the Collector may, on sufficient casue being shown, permit in any particular case. (2) The assessee shall maintain a detailed account of the returned goods and the processes to which they are subjected, after their return to the factory in the proper form. (3) No refund under sub-rule (1) shall be paid until the processes mentioned therein, have been completed and an account under sub-ride (2) having b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is, that a manufacturer cannot bring back the excisable goods in his factory for which he has paid the excise duty unless any of the contingency as mentioned in sub-rule (2) of Rule 173H of the Rules is available. In view of the Rule 173H sub-rule (2) Clause C, the goods on which excise duty has been paid can be brought in the factory even for the purpose of remade, refining, reconditioning, repair or subjected to any similar process. It appears that because of this Clause C under sub-rule (2) of Rule 173H, it may have been misunderstood that these goods, which are brought in the factory upon which the excise duty has been paid then only benefit available to the assessee is under Rule 173L of refund of excise duty. It appears that it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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