Modvat declaration for copper scrap covered brass scrap because copper includes its alloys under tariff rules

Under the Modvat scheme, a declaration describing inputs as copper scrap was held sufficient to cover brass scrap, because brass is an alloy of copper and zinc and there was no separate tariff entry for brass scrap. Applying Section Note 4 of Section XV, the Tribunal treated a reference to copper as including its alloys unless the context otherwise required. On that basis, brass scrap fell within the declared description and Modvat credit was admissible.

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Issues: Whether Modvat credit was admissible when the declaration described the inputs as copper scrap but the credit was taken on brass scrap, and whether brass scrap could be treated as covered by the declaration for copper scrap.

Analysis: The declaration under the Modvat scheme specified copper scrap along with the tariff heading. The Tribunal accepted that brass is an alloy of copper and zinc, and that there is no separate tariff entry for brass scrap. Relying on Section Note 4 of Section XV, the Tribunal held that a reference to copper includes its alloys unless the context otherwise requires, and therefore brass scrap would fall within the declaration of copper scrap.

Conclusion: The declaration was sufficient to cover brass scrap, and the assessee was entitled to Modvat credit.

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