LAWS(CE)-2004-3-306

COMMR. OF C. EX. Vs. HINDUSTAN PHARMACEUTICALS LTD.

Decided On March 25, 2004
Commr. of C. Ex. Appellant
V/S
Hindustan Pharmaceuticals Ltd. Respondents

JUDGEMENT

(1.) The learned Single Member after noticing the conflicting decision of the Tribunal in the case of Collector of Central Excise v. Metazinc (India) Ltd., reported in 1991 (53) E.L.T. 402 (Tribunal) and in the case of Commissioner of Central Excise, Calcutta -IV v. Fort William Co. Ltd. reported in 2001 (130) E.L.T. 620 (Tri. -Kolkata) referred the matter to the Larger Bench. The issue before the Larger Bench is in respect of quantum of refund, under Rule 173L of Central Excise Rules, 1944, in respect of goods which were earlier cleared on payment of duty and, thereafter, received in the factory of the manufacturer and the same were cleared after re -processing/re -conditioning at Nil rate of duty under the exemption notification.

(2.) We find that the issue in the case of Collector of Central Excise v. Metazinc (India) Ltd., reported in 1991 (53) E.L.T. 402 (Tribunal) was in respect of the duty paid goods received in the factory of manufacturer for re -processing and, thereafter, the goods were cleared for export under AR -3. In this situation the Tribunal allowed the refund under Rule 173L of Central Excise Rules, 1944. Therefore, the decision of the Tribunal in the case of Collector of Central Excise v. Metazinc (India) Ltd. (supra) is not relevant for deciding the issue before us.

(3.) The Tribunal in the case of Commissioner of Central Excise, Calcutta -IV v. Fort William Co. Ltd. (supra) held that the duty paid goods received in the factory of the manufacturer were cleared after re -processing under Nil rate of duty under exemption notification, the amount of refund will be zero as per Rule 173L Proviso (iv) of Central Excise Rules, 1944.