Exemption for specified goods denied where inputs were treated as waste and scrap and proof of eligibility was not established.

Exemption under Notification No. 208/83-C.E. depended on the inputs strictly answering the tariff description and the notification's specified goods requirement. The materials bought by the assessee were found to be trimmings, forgings, dismantled machines, broken engineering goods, punched steel containers and similar broken articles, and were not proved to be pieces roughly shaped. The insertion of that expression on invoices was not effectively rebutted. For the period governed by the amended Note 6 to Section XV, the materials were waste and scrap and therefore outside the notification; for the earlier period, the assessee still failed to show that the goods had any use other than recovery of metal. The burden of proving exemption was not discharged, so the benefit failed.

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Issues: Whether the final products were entitled to exemption under Notification No. 208/83-C.E. when the inputs used were alleged to be specified goods, namely pieces roughly shaped, and not waste and scrap.

Analysis: The exemption depended upon use of the inputs specified in the notification and upon satisfaction of the tariff description. The materials purchased by the assessee were found to consist of trimmings, forgings, dismantled machines, broken engineering goods, punched steel containers and other broken articles. On the evidence, these were not shown to be pieces roughly shaped. The finding that the expression had been inserted later on the invoices was not effectively rebutted. For the period governed by the amended definition in Note 6 to Section XV, the materials answered the description of waste and scrap, which was outside the notification. For the earlier period also, the assessee did not establish that the materials were usable for purposes other than recovery of metal. The burden lay on the assessee to prove entitlement to the exemption.

Conclusion: The benefit of the notification was not available and the exemption claim failed.

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