Waste paper as unconventional raw material supports Central Excise exemption when the notification covers such inputs.

Paper manufactured using waste paper qualified for Central Excise exemption because the governing circular treated waste paper as an unconventional raw material covered by the notification. The Tribunal followed earlier decisions taking the same view and held that, where the notification extends the benefit to such material, the exemption cannot be denied on the ground that waste paper was used as input. The claim was therefore accepted in favour of the assessee.

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Issues: Whether paper manufactured using waste paper was eligible for exemption under the relevant Central Excise notifications.

Analysis: The appellants used waste paper in the manufacture of paper and paperboards. The Board's circular clarified that waste paper is to be treated as an unconventional raw material eligible for exemption under the notification. The Tribunal also relied on earlier decisions holding that waste paper qualified for exemption, and the consistent view in the cited cases supported grant of the benefit.

Conclusion: The paper manufactured using waste paper was held eligible for the exemption, and the claim was accepted in favour of the assessee.

Ratio Decidendi: Where the relevant circular treats waste paper as an unconventional raw material and the applicable notification extends exemption to such material, the exemption benefit cannot be denied.

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