M.S. scrap from TMT/CTD bar manufacture may qualify as specified goods for budgetary support under the notification scheme.

M.S. scrap generated as an inherent residue in the manufacture of TMT/CTD bars was treated as capable of falling within "specified goods" under the relevant budgetary support notifications, because the scrap arose from the same manufacturing process, retained the essential character of the product, and was not shown to fall within any exclusion. The refusal to grant reimbursement on the ground that the scrap was not a specified good was therefore found unsustainable, and the impugned order was quashed with a direction to reconsider the claim under the applicable notifications.

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Issues: Whether M.S. Scrap generated during the manufacture of TMT/CTD bars and sold by the industrial unit qualified as "specified goods" for the purpose of budgetary support under the relevant Central and State notifications.

Analysis: The scheme under the State notification defined "specified goods" as goods manufactured by the industrial unit and allowed by the competent industrial authority, subject to an exclusionary list. The scrap in question was found to be an inherent residue arising in the course of the same manufacturing process by which the unit produced TMT/CTD bars. The material on record also showed that the scrap retained the essential character of the manufactured product and was not shown to fall within any excluded category. On that basis, the refusal to treat such scrap as eligible for reimbursement was found unsustainable.

Conclusion: The rejection of reimbursement on the ground that M.S. Scrap was not a specified good was held to be unjustified, and the impugned order was quashed with a direction to reconsider the claim afresh in accordance with the applicable notifications.

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