Aluminium scrap exemption applies to waste arising in a continuous manufacturing process from duty-paid wire rod.

Aluminium waste and scrap generated in a continuous manufacturing process from wire rod used to produce conductors was treated as scrap manufactured from goods covered by the exemption conditions in Notification No. 182/84-C.E. Because the scrap arose during conversion of duty-paid wire rod and fell within the notification's scope for aluminium waste and scrap under sub-heading 7602.00, the exemption was held available and the denial of benefit was set aside.

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Issues: Whether aluminium waste and scrap arising during the continuous process of manufacture of conductors from wire rod was eligible for exemption under Notification No. 182/84-C.E.

Analysis: The notification exempted aluminium waste and scrap falling under sub-heading 7602.00 when manufactured from goods under specified headings on which duty had already been paid, or arising from other goods manufactured in India. The scrap in question arose from wire rod falling under Heading 76.03 during the course of converting wire rod into conductors, and the process was treated as a continuous process of manufacture. On that basis, the scrap was held to have been manufactured from goods covered by the notification conditions.

Conclusion: The exemption under Notification No. 182/84-C.E. was available to the assessee, and the denial of benefit was set aside.

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