Exemption for plastic waste scrap denied where duty on inputs did not equal duty on finished polyurethane foam blocks.

Waste parings and scrap of plastics arising from uncut polyurethane foam blocks were not covered by Notification No. 53/88 because the blocks themselves had not suffered duty; duty paid on the inputs used to make the blocks did not amount to duty paid on the resultant goods. Reading the exemption notifications together, the interpretation had to avoid making Notification No. 54/88 redundant. The waste was therefore chargeable under Notification No. 54/88, and since the concessional benefit under that notification had already been extended, no further relief was available.

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Issues: Whether waste parings and scrap of plastics arising from uncut polyurethane foam blocks were entitled to exemption under Notification No. 53/88, and whether in the alternative they attracted the concessional rate under Notification No. 54/88.

Analysis: The waste material arose from uncut polyurethane foam blocks on which no duty had been paid. The claim for exemption under Notification No. 53/88 was examined together with Notification No. 217/86, which exempts captively consumed inputs but excludes final products chargeable to nil rate of duty or wholly exempt. Accepting the appellants' construction would render Notification No. 54/88 redundant, which had to be avoided. The distinction between duty paid on raw materials and duty paid on the resultant goods was material, and duty paid on the materials used to make the foam blocks did not mean that duty had been paid on the blocks themselves.

Conclusion: The waste material was not entitled to exemption under Notification No. 53/88 and was chargeable under Notification No. 54/88. The concessional benefit under Notification No. 54/88 had already been allowed, so no further relief was due.

Ratio Decidendi: Where competing exemption notifications are construed together, an interpretation that avoids rendering one notification redundant must prevail, and duty paid on inputs does not amount to duty paid on the resultant goods for claiming exemption on waste arising from those goods.

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