Rerollable M.S. cuttings qualify for exemption under Notification No. 208/83, not scrap, and revenue appeals fail.

M.S. rod cuttings, angle cuttings and plate cuttings were treated as rerollable materials, not scrap, for purposes of Notification No. 208/83. The Tribunal noted that the inputs corresponded to the relevant Customs Tariff items and that the exemption applied where the specified inputs were used in the manufacture of finished goods. Relying on its earlier view that similar cuttings were rerollable materials and on the departmental concession that the goods were rerollable, the Tribunal accepted eligibility under the notification and upheld the impugned order, resulting in rejection of the revenue appeals.

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Issues: Whether M.S. rod cuttings, angle cuttings and plate cuttings were scrap or rerollable inputs eligible for exemption under Notification No. 208/83, and whether the revenue appeals against the Collector (Appeals) order were liable to be rejected.

Analysis: The inputs were found to be M.S. rod cuttings, angle cuttings and plate cuttings. The Tribunal noted that the respondents treated these materials as classifiable under Customs Tariff Item 25(9)(ii) and 25(ii), and that Notification No. 208/83 exempted finished goods when the inputs fell within the specified tariff items. Relying on its earlier decision holding similar raw materials for manufacture of M.S. rounds, squares, angles and channels to be rerollable materials and not scrap, the Tribunal accepted the same position here. The departmental concession that the inputs were rerollable further supported that view.

Conclusion: The inputs were not scrap but rerollable materials eligible under the notification, so the revenue appeals were rejected and the impugned order was upheld.

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