Judgment

SABYASACHI MUKHARJI, J. :-This is a statutory appeal against the decision of the Customs Excise and Gold (Control) Appellate Tribunal (for short CEGAT). The appellant Company had filed a Classification List under Rule 173B of the Central Excise Rules stating that they intended to clear PPRF Yarn on which duty had already been paid.

2. According to the appellant. the PPRF Yarn consists of two varieties of Yarn on which duty has already been paid namely, two plies of Polyester Spun Yarn - PP and one ply of Rayon Filament Yarn - RE which are doubled together and the resultant yarn is referred to as PPRF Yarn. The aforesaid classification list filed by the appellant was rejected and it was directed to file a fresh classification list showing PPRF yarn under Tariff Item 68 of the Central Excise Rules. The case of the appellant is that since it was not permitted to clear PPRF Yarn without further payment of duty under Tariff Item 68 of the said Rules, on or from 27th April, 1976 they started making clearance on payment of duty on PPRF Yarn under protest.

3. Thereafter, in Oct, 1978, the appellant filed refund claim for the period from April to September, 1978 for a sum of Rs. 84,65