Exemption for iron waste and scrap applies even when the source goods were duty-exempt, absent an express exclusion.

Notification No. 171/88-C.E. allowed nil duty on ferrous waste and scrap where the scrap arose from specified goods and the relevant duty had already been paid, but the Tribunal applied the Supreme Court's principle that an exemption is not denied merely because the underlying goods carried nil duty unless the notification expressly excludes that situation. On that basis, waste and scrap of iron arising from exempt goods remained eligible for the notification. The Tribunal also followed its earlier decision in the assessee's own case on the same facts, and the exemption was held available.

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Issues: Whether the benefit of Notification No. 171/88-C.E., dated 13-5-1988 was available to waste and scrap of iron when such waste arose from goods that were themselves exempt from duty.

Analysis: Notification No. 171/88-C.E. granted nil rate of duty to ferrous waste and scrap subject to the condition that the waste and scrap must arise from specified goods on which excise duty had already been paid and the credit of such duty had not been taken. The Tribunal followed the Supreme Court's view that where the duty on the relevant raw material is nil, the finished product may still claim the benefit of exemption unless the notification expressly excludes such cases. As the issue had already been decided in the appellant's own case for another period on the same footing, the same reasoning applied here.

Conclusion: The benefit of the notification was available and the assessee succeeded.

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