Countervailing duty exemption for lead scrap denied where the scrap did not arise from duty-paid lead products.

Imported lead scrap did not qualify for exemption from countervailing duty under the 1 March 1981 notification because the exemption applied only to waste and scrap of lead arising from lead falling within the specified tariff items and where the relevant excise duty or additional duty under Section 3 of the Customs Tariff Act, 1975 had already been paid. The notification was construed as referring back to that specified category of lead, and the imported scrap did not originate from such duty-paid lead products. The argument that it was not manufactured scrap did not remove it from the additional duty regime, so countervailing duty remained payable.

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Issues: Whether imported lead scrap was exempt from countervailing duty under the notification dated 1 March 1981.

Analysis: The notification exempted waste and scrap of lead only where it arose from lead falling within the specified tariff items and where the appropriate excise duty or, as the case may be, additional duty under Section 3 of the Customs Tariff Act, 1975 had already been paid. The expression used in the exemption was read as referring back to that described category of lead. The imported lead scrap did not arise from lead products on which excise duty or additional duty had been paid, and the contention that it was not manufactured scrap did not take the case outside the charging scheme for additional duty.

Conclusion: The imported lead scrap did not qualify for exemption and countervailing duty was payable.

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