Duty demand u/r 17H of Central Excise Rules merely for clearance after 6 months unsustainable

Atco Industries Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad)

CESTAT Ahmedabad held that as there was no manufacture of fresh goods there cannot be a duty demand under rule 173H of the Central Excise Rules, 1944 merely for reason of clearance after 6 months.

Facts-

The main issue involved in these Appeals is whether “Polycarbonate Containers” were received back by Appellant – Atco Industries Ltd, in terms of Rule 173H of the Central Excise Rules, 1944 on account of rejection by buyers due to quality issues and which were repaired and cleared in terms of Rule 173H as contended by the Appellant or were in fact, fresh Containers manufactured and cleared in the guise of repaired containers as alleged by Revenue and therefore liable to duty.

Conclusion-

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