ORDER
V.K. Agrawal, Member (T)
1. The issue involved in this appeal is whether benefit of Notification No. 171/88, dated 13-5-1988 is available in respect of waste and scrap of iron, though the waste had arisen out of the goods which were exempted from payment of duty.
2. Shri R. Muralidharan, Sr. Manager Finance, submitted that in their own case for a different period involving the same issue the East Regional Bench of the Tribunal vide Order No.l566/CAL/97, dated 19-11-1997 has held that the benefit of notification is available following the ratio of the Supreme Court decision in the case of Collector of Central Excise, Patna v. Usha Martin Industries, reported in 1997 (94) E.L.T. 460 (S.C). We heard Shri A.K. Jain, learned Departmental Representative, who reiterated the findings contain in the impugned order.
3. Notification No. 171/88-C.E., dated 13-5-1988 provides Nil rate of duty in respect or Ferrous, waste and scrap, provided that such waste and scrap have arisen from goods covered by Chapter 72 and other sepecified goods falling under Heading 73.25 and 84.54 on which duty of excise leviable has already been paid and the credit of such duty has not been taken. The Supreme Court in the case of Usha Martin Industries (supra) has held that the appropriate amount of duty paid on raw-material was Nil, finished goods can yet legitimately claim the benefit of exemption. If Government wanted a different meaning to be adopted, nothing prevented it from denying exeption if the raw material was fully exempted from duty. Following the ratio of the Supreme Court decision which has been followed by East Regional Bench in the Appellants’ own case, we set aside the impugned order and allow the appeal.