Waste and scrap exemption covers runners and risers from ingot manufacture under the duty payment scheme.

Notification No. 49/97-C.E. was treated as covering waste and scrap arising during the manufacture of ingots and billets in a unit discharging duty under section 3A of the Central Excise Act. Runners and risers generated in the course of ingot manufacture were regarded as falling within that exempt category, so the exemption was available to such by-products. On that basis, the Revenue's challenge failed and the exemption was confirmed for runners and risers emerging in the manufacturing process.

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Issues: Whether runners and risers emerging during the manufacture of ingots are eligible for exemption from duty as waste and scrap under Notification No. 49/97-C.E. where the duty liability on the unit is discharged under section 3A.

Analysis: The exemption notification was held applicable to waste and scrap arising in the course of manufacture of ingots and billets in a unit paying duty under section 3A. Runners and risers generated during the manufacture of ingots were treated as falling within the ambit of the notification.

Conclusion: The exemption under Notification No. 49/97-C.E. is available to runners and risers emerging during the manufacture of ingots in a unit where duty is discharged under section 3A of the Central Excise Act, and the Revenue appeals fail.

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