Copper billet exemption turns on binding circulars treating nil duty paid as duty paid, with belated claim permitted.

Copper billets manufactured and used captively were treated as eligible for exemption under the relevant notification. The note states that the benefit could be raised before the Tribunal even if not claimed earlier, and that the expression requiring duty to have been paid included "nil duty paid" in light of binding Board circulars. The departmental view contrary to those circulars was rejected, with the result that the exemption was allowed and the demand and penalties were said not to survive.

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Issues: Whether the billets of copper manufactured and used captively were entitled to exemption under the relevant notifications, including on the footing that the inputs had been imported without payment of duty, and whether the exemption could be claimed before the Tribunal though not claimed earlier.

Analysis: The exemption under the relevant notification was considered applicable to copper and copper wrought bars, and the objection based on the absence of an earlier claim was rejected since an exemption can be raised at the Tribunal stage. The expression requiring that duty had already been paid was read in the light of Board circulars clarifying that "nil duty paid" also falls within that expression. The circulars were treated as binding, and the departmental stand contrary to them could not be sustained.

Conclusion: The billets were entitled to the exemption, and the denial of benefit was unsustainable.

Final Conclusion: The demand and penalties did not survive, and the assessee succeeded in the appeal.

Ratio Decidendi: A Board circular clarifying that "duty already paid" includes "nil duty paid" is binding on the department, and exemption cannot be denied on a contrary interpretation where the notification is otherwise applicable.

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