Exemption for copper intermediates applied beyond direct use, and unmarketable untrimmed sheets were excluded from duty computation.

Exemption under Notification No. 42/94, as amended by Notification No. 135/94, was available for unwrought copper and slag used in manufacturing utensils and handicrafts through the stage of trimmed sheet circles, because the notification was not confined to direct use only. Untrimmed copper sheets were also treated as not dutiable in the absence of evidence that they were marketable, and their value could not be included in computing aggregate clearances under Notification No. 1/93. On that basis, the Commissioner (Appeals) was right in granting relief and the Revenue's challenge was rejected.

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Issues: Whether the assessees were entitled to the benefit of the exemption notifications in respect of trimmed sheet circles, unwrought copper slabs, copper waste and scrap, and slag/dross, and whether the Commissioner (Appeals) was right in allowing the exemption.

Analysis: The goods and the claimed exemptions had already been considered in the assessees' own earlier case. It was held there that Notification No. 42/94 as amended by Notification No. 135/94 applied to unwrought copper and slags used in the manufacture of utensils and handicrafts through the stage of trimmed sheets, because the notification did not confine the exemption to direct use only. It was also held that untrimmed copper sheets were not dutiable in the absence of evidence of marketability, and that the value of such untrimmed sheets could not be included for computing the aggregate value of clearances under Notification No. 1/93.

Conclusion: The exemption was available and the Commissioner (Appeals) was in granting relief. The Revenue's appeals were rejected.

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