Nil duty under Notification 202/88 denied for old re-rollable scrap used in re-rolled bars and rods.

Old and used re-rollable scrap purchased from kabaries was held not to qualify as eligible input material for nil duty under Notification No. 202/88. The Tribunal applied earlier decisions that old and unserviceable re-rollable scrap falls outside the notification's specified inputs, and treated the material in question as admittedly old, used scrap. A decision under Notification No. 55/80-CE was found inapplicable because that notification was framed differently and did not extend the same benefit. The nil rate of duty was therefore unavailable, and the duty demand was upheld.

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Issues: Whether old and used re-rollable material purchased from kabaries and used as inputs for re-rolled bars and rods qualified for the benefit of nil rate of duty under Notification No. 202/88.

Analysis: The Tribunal followed earlier decisions holding that old and unserviceable re-rollable scrap is not covered by the specified inputs in Notification No. 202/88. The input material in the present case was admittedly old and used re-rollable scrap, and therefore did not answer the description of eligible inputs under the notification. The relied-upon decision concerning Notification No. 55/80-CE was held inapplicable because that notification was framed differently and the present notification did not extend the same benefit to the material in question.

Conclusion: The benefit of nil rate of duty under Notification No. 202/88 was not available to the assessee, and the duty demand was upheld.

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