Scrap as input for exemption under excise notification required fresh factual finding and reconsideration.

Scrap used as raw material was considered for exemption under Notification No. 208/83-C.E., with the central issue being whether it qualified as an "input" under the notification. The appellate authority had not made a clear finding on this point, and the factual basis for its conclusion was found to be contradictory. The matter was therefore remitted for fresh consideration on the relevant issue after giving the assessee an opportunity of hearing, and further orders were to follow on the basis of that finding.

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Issues: Whether the scrap used as raw material could be treated as an input within the meaning of Notification No. 208/83-C.E. dated 1-8-1983 so as to avail the exemption.

Analysis: The appellate authority had not recorded a clear finding on whether the scrap used by the assessee fell within the category of inputs covered by the notification. The factual basis for the conclusion was also found to be contradictory, and the matter required reconsideration on the relevant issue after giving the assessee an opportunity of hearing.

Conclusion: The matter was remitted to the Collector (Appeals) for a clear finding on whether the scrap qualified as an input under the notification, and suitable orders were to follow on that basis.

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