Beneficial exemption for stainless steel melting scrap confirmed where goods fit more than one customs entry.

Imported stainless steel melting scrap was held to fall within the exemption for melting scrap under Notification No. 21/2002-Cus, read with Chapter 72 of the Customs Tariff, because steel and stainless steel are treated as forms of steel and the notification text, as amended, no longer excluded stainless steel from that entry. The tariff scheme and the object of reducing duty to improve raw material supply supported the broader exemption. The settled fiscal principle that an assessee may claim the more beneficial exemption where goods reasonably fit more than one entry was applied, so the Revenue could not deny the claimed benefit.

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Issues: Whether imported stainless steel melting scrap was entitled to exemption under Notification No. 21/2002-Cus dated 01.03.2002, and whether the assessee could claim the more beneficial entry where the goods could reasonably fall under more than one exemption entry.

Analysis: The entries in the notification were examined across the relevant periods and in the context of Chapter 72 of the Customs Tariff, which treats steel and stainless steel as forms of steel. The removal of the words excluding stainless steel from the melting scrap entry, together with the tariff scheme and the object of reducing duty to improve raw material supply, supported the view that stainless steel melting scrap could be covered under the melting scrap entry. The settled principle applied was that where two exemption entries or notifications are available, the assessee is entitled to the more beneficial one, and a specific exemption does not necessarily override a beneficial exemption in fiscal concessions.

Conclusion: The imported goods were eligible for exemption under Notification No. 21/2002-Cus, and the Revenue could not deny the benefit claimed by the assessee.

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