Exemption for runners and risers denied where the goods fell outside both steel notifications and the compounded levy regime.

Runners and risers arising during manufacture of non-alloy steel ingots and billets were not eligible for exemption under either Notification No. 50/97-C.E. or Notification No. 49/97-C.E. The goods were classified under Chapter Heading 7204.90 and fell outside Notification No. 50/97-C.E., which applied only to specified ingots and billets manufactured under the compounded levy regime. Notification No. 49/97-C.E. also did not apply because it covered waste and scrap arising from manufacture of ingots and billets on which duty was payable under Section 3A, whereas the relevant period pre-dated the introduction of that regime. The resulting position was denial of exemption under both notifications.

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Issues: Whether runners and risers arising in the course of manufacture of non-alloy steel ingots and billets were entitled to the benefit of Notification No. 50/97-C.E. dated 01.08.1997 or Notification No. 49/97-C.E.

Analysis: The goods in question fell under Chapter Heading 7204.90 and were not covered by Notification No. 50/97-C.E., which extended concessional treatment only to specified ingots and billets manufactured under the compounded levy regime. The claim under Notification No. 49/97-C.E. also failed because that exemption applied to waste and scrap arising in the course of manufacture of ingots and billets on which duty was payable under Section 3A of the Central Excise Act, 1944. The admitted position was that the runners and risers related to a period prior to the introduction of the compounded levy scheme under Section 3A.

Conclusion: The assessee was not entitled to the benefit of either notification.

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