Waste paper repulping exemption applies to paper made from broke, and factory-origin of the waste is immaterial.

Paper manufactured from broke was treated as paper made from waste paper, not as paper derived directly from bamboo pulp, because the waste had to be repulped before conversion into new paper. The place where the waste paper arose, whether inside or outside the factory, was immaterial to the exemption analysis. On that reasoning, paper produced from broke fell within the concessional assessment available under Notification No. 22/94-C.E., as amended, and the denial of exemption was rejected in favour of the assessee.

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Issues: Whether paper manufactured from broke arising within the factory is entitled to concessional assessment under Notification No. 22/94-C.E. dated 01.03.1994 as amended by Notification No. 4/97-C.E. dated 01.03.1997.

Analysis: Broke was treated as waste paper and not as bamboo pulp merely because it originated from paper initially made from bamboo. The relevant process required the waste paper to be repulped before it could be converted into paper again, so the pulp used for the final product was derived from waste paper and not directly from bamboo. The location from which the waste paper arose, whether within the factory or outside it, was held to be immaterial for the exemption. The exemption had already been recognized for paper made from waste paper, and the same reasoning applied to broke.

Conclusion: Paper manufactured from broke was held eligible for the exemption and the denial of concessional assessment was rejected, in favour of the assessee.

Ratio Decidendi: Waste paper that is repulped and then used to manufacture paper is to be treated as pulp derived from waste paper, not as the original excluded raw material from which the waste first arose.

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