Exemption for iron and steel rods from re-rollable materials must be reconsidered under a binding Board circular

Exemption under Notification No. 202/88 for iron and steel rods and bars made from re-rollable materials depended on whether such inputs qualified within the notification's scope. The Board's Circular No. 27/89 on re-rollable scrap was binding and had not been considered by the lower authority, so the exemption claim had to be re-examined in light of that circular and the appellant's other submissions, including limitation. The matter was remanded to the jurisdictional Assistant Collector for fresh consideration on that basis.

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Issues: Whether the appellants were entitled to exemption under Notification No. 202/88 for iron and steel rods and bars manufactured from re-rollable materials, and whether the Board's circular on re-rollable scrap required reconsideration of the claim.

Analysis: The dispute turned on whether re-rollable materials could be treated as eligible inputs under the notification. The Board's Circular No. 27/89, which addressed exemption for re-rollable scrap, had not been placed before or considered by the lower authority. As such circulars are binding, the claim had to be examined in the light of that circular as well as the appellant's other submissions, including limitation.

Conclusion: The matter was remanded to the jurisdictional Assistant Collector for fresh consideration in the light of the binding circular and other relevant submissions.

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