Imported copper scrap exemption denied where factory-use condition for nil additional customs duty was not satisfied.

Imported copper scrap was not entitled to nil additional customs duty because the exemption applied only to copper waste and scrap used within the factory of production for manufacture of specified products. Scrap brought from abroad and not generated in the importer's factory did not satisfy that condition, so the exemption could not be extended and the claim failed.

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Issues: Whether imported copper scrap was entitled to nil rate of additional customs duty under Section 3 of the Customs Tariff Act in terms of Notification No. 8/96-C.E. dated 23-7-96.

Analysis: The exemption and the tariff entry granted nil duty only to copper waste and scrap used within the factory of production for manufacture of specified products. The imported scrap was brought from abroad and had not been generated in the appellants' factory. On that footing, the condition that the waste and scrap be used within the factory of production was not satisfied, and the benefit of the exemption could not be extended.

Conclusion: The imported copper scrap was not eligible for nil rate of additional customs duty, and the claim for exemption failed.

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