Exemption for brass scrap and limitation objections required fresh adjudication where relevant proviso and findings were left unexamined.

Brass scrap arising in manufacture of carburettor parts from brass rods was considered for exemption under Notification No. 172/84-C.E., but the authorities had examined only one limb of the proviso and had not considered the limb relating to waste and scrap arising from goods under other tariff sub-headings. The limitation objection was also raised before the lower authorities, but no finding had been recorded on that issue. The appeal was allowed and the matter remitted to the Commissioner (Appeals) for fresh adjudication after hearing the appellant.

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Issues: Whether brass scrap arising in the appellant's factory was eligible for exemption under Notification No. 172/84-C.E.; and whether the demand was barred by limitation.

Analysis: The order proceeded on the basis that the scrap had arisen during manufacture of carburettor parts from brass rods and that the authorities had denied the exemption by applying one limb of the notification. A further limb of the proviso, relating to waste and scrap arising from goods falling under other tariff sub-headings, had not been examined by the authorities. The limitation objection was also raised before the lower authorities, but no finding had been recorded on that point.

Outcome: The appeal was allowed and the matter was remitted to the Commissioner (Appeals) for fresh adjudication after hearing the appellant.

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