Concessional exemption for re-melting scrap ingots applies when the notified heading and end-use conditions are satisfied.

Re-melting scrap ingots classified under Heading 7204.50 were held eligible for concessional duty under Notification No. 16/2000-Cus because Heading 72.04 covered ferrous waste and scrap, including re-melting scrap ingots, and the notification required only compliance with the end-use undertaking and certification by the jurisdictional Central Excise authority. As the importer produced the prescribed end-use certificate and the goods were not excluded by the notification, denial of the exemption was unsustainable and the duty demand was set aside.

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Issues: Whether re-melting scrap ingots classifiable under Heading 7204.50 were entitled to the concessional rate of duty under Notification No. 16/2000-Cus dated 01.03.2000 for melting scrap of iron or steel.

Analysis: The notification prescribed concessional duty for melting scrap of iron or steel under Heading 72.04, subject to an undertaking and proof of end use by certificate from the jurisdictional Central Excise authority. The imported goods were classifiable under Heading 7204.50 as re-melting scrap ingots, but the main tariff heading 7204 itself covered ferrous waste and scrap including re-melting scrap ingots. The goods were not excluded by the notification, and the importer had complied with the prescribed condition and produced the end-use certificate establishing use for melting.

Conclusion: The goods were eligible for the benefit of Notification No. 16/2000-Cus and denial of the exemption was not sustainable.

Final Conclusion: The demand was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Where imported goods fall within the notified tariff heading and the importer satisfies the stipulated end-use condition, the benefit of a concessional exemption cannot be denied merely because the goods are described more specifically as re-melting scrap ingots.

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