Steel melting scrap interpretation allowed concessional duty where defective ingots were remelted and recast into new ingots.

Defective steel ingots remelted and recast into ingots were treated as steel melting scrap for concessional duty under Notification No. 53/80-C.E. because the tariff did not define the term and its ordinary meaning covered discarded or unusable material fit only for melting. On the facts, remelting the defective ingots showed they were unfit for any use other than recovery of metal, so the material fell within the notification and the concessional rate was admissible.

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Issues: Whether defective steel ingots remelted and recast into ingots could be treated as steel melting scrap for the purpose of availing the concessional duty under Notification No. 53/80-C.E. dated 13-5-1980.

Analysis: The term "steel melting scrap" was not defined in the tariff, so its meaning could be gathered from the ordinary dictionary sense of scrap as discarded, worn-out, or useless material fit only for melting. On the facts, the very act of remelting the defective ingots showed that they were unfit for any use other than melting for recovery of metal. The material was therefore treated as steel melting scrap, and the resultant ingots were held to have been produced from material covered by the notification.

Conclusion: The concessional rate under Notification No. 53/80-C.E. dated 13-5-1980 was admissible to the assessee.

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