Tariff interpretation: reference to copper waste and scrap includes brass scrap unless the context clearly excludes alloys.

Brass scrap was held to fall within the deemed credit entry for "copper waste and scrap" under the applicable trade order. Section Note 6 to Section XV of the Central Excise Tariff Act, 1985 treats a reference to a base metal as including its alloys unless the context otherwise requires, and the tariff wording did not limit the entry to virgin copper alone. The distinction elsewhere in the tariff between refined copper and copper alloys did not justify excluding brass scrap from this specific benefit. The consequence was that denial of deemed credit was not justified and entitlement under the entry was upheld.

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Issues: Whether brass scrap fell within the deemed credit entry for "copper waste and scrap" under the applicable trade order and tariff scheme.

Analysis: The deemed credit facility under the order dated 7 July 1992 used the expression "copper waste and scrap". Section Note 6 to Section XV of the Central Excise Tariff Act, 1985 provides that a reference to a base metal includes alloys of that metal unless the context otherwise requires. The wording of the entry, read with the tariff structure, did not confine the benefit to virgin copper alone. The distinction drawn in the tariff between refined copper and copper alloys in other entries did not support a contrary reading for the disputed entry.

Conclusion: Brass scrap was covered by the expression "copper waste and scrap", and the denial of deemed credit was not justified.

Final Conclusion: The revenue's challenge to the grant of deemed credit failed, and the assessee's entitlement under the entry was upheld.

Ratio Decidendi: In tariff interpretation, a reference to a base metal ordinarily includes its alloys unless the context clearly excludes them.

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