Beneficial exemption choice applies where stainless steel scrap fits more than one customs notification entry.

Stainless steel melting scrap was held to fall within Sr. No. 200 of Notification No. 21/2002-Cus., because Chapter 72 treats steel as including stainless steel and the notification's text no longer excluded stainless steel from that entry. Although Sr. No. 202 separately covered scrap of stainless steel for melting, the exemption structure allowed overlapping coverage. Where goods answer more than one exemption entry, the assessee may choose the more beneficial exemption. On that basis, denial of the Sr. No. 200 benefit was unsustainable, the demand could not stand, and the exemption was allowed.

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Issues: Whether stainless steel melting scrap was classifiable under Sr. No. 200 of Notification No. 21/2002-Cus. as melting scrap of iron or steel, and whether the assessee could claim the more beneficial exemption instead of being confined to Sr. No. 202.

Analysis: Sr. No. 200 originally excluded stainless steel, but that exclusion was later removed, while Sr. No. 202 separately covered scrap of stainless steel for melting. Chapter 72 of the Customs Tariff Act treats steel as including stainless steel, and the exemption structure showed two potentially applicable entries. In exemption matters, where goods fall within more than one entry, the assessee is entitled to choose the more beneficial exemption. The goods imported by the appellant therefore answered the description in Sr. No. 200, and the benefit could not be denied merely because Sr. No. 202 also existed.

Conclusion: The appellant was entitled to exemption under Sr. No. 200 of Notification No. 21/2002-Cus., and the demand confirmed under the impugned order could not stand.

Final Conclusion: The assessment was set aside and the appellant succeeded in securing the exemption benefit on the imported stainless steel melting scrap.

Ratio Decidendi: Where two exemption entries are capable of covering the same goods, the assessee may opt for the entry granting greater relief, and stainless steel may fall within a steel entry if the notification text and tariff context so indicate.

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