Waste and scrap exemption applies to runners and risers arising in ingot manufacture under the central excise notification.

Waste and scrap generated during the manufacture of ingots, including runners and risers, was treated as covered by the exemption under Notification No. 49/97-CE because it arose in the course of manufacture in an induction furnace unit discharging duty under Section 3A of the Central Excise Act, 1944. The Tribunal followed its earlier ruling that such by-products fall within the notification's scope, so the exemption was available and the Revenue's challenge failed.

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Issues: Whether runners and risers emerging during the manufacture of ingots were entitled to exemption as waste and scrap under Notification No. 49/97-CE dated 1-8-97.

Analysis: The issue was held to be covered by the Tribunal's earlier decision, under which waste and scrap arising in the course of manufacture of ingots and billets in an induction furnace unit, where duty is discharged under Section 3A of the Central Excise Act, 1944, falls within the scope of the exemption notification. Runners and risers arising in that process were treated as covered by the notification.

Conclusion: The exemption was available to runners and risers emerging during the manufacture of ingots in a unit paying duty under Section 3A of the Central Excise Act, 1944.

Final Conclusion: The Revenue's appeals failed and the exemption claim of the assessee was sustained.

Ratio Decidendi: Waste and scrap arising in the course of manufacture of ingots in a unit governed by Section 3A of the Central Excise Act, 1944 cannot be denied the benefit of an exemption notification when it squarely falls within the notification's coverage.

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