Exemption for intermediate billets made from scrap was applied to treat the goods as duty-free under the relevant notifications.

Intermediate billets generated from scrap in the course of manufacturing rods were treated as cast articles falling within Chapter 74 and the goods described in the relevant exemption table. On that basis, the text states that Notification No. 178/88 read with Notification No. 98/88 applied to the billets, supported by prior Tribunal authority and the departmental clarification cited in the record. The billets were therefore regarded as exempt from duty.

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Issues: Whether intermediate billets manufactured out of scrap were exempt from duty under Notification No. 178/88 read with Notification No. 98/88.

Analysis: The intermediate product, namely billets, arose in the course of manufacturing rods and was treated as cast articles covered by the description in the relevant notifications. The exemption applied to the goods specified in column 2 of the table and falling within Chapter 74 of the tariff schedule. The issue had also been considered in prior Tribunal authority and was supported by the departmental clarification referred to in the record.

Conclusion: The billets were held to be covered by the exemption notifications and were not liable to duty.

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