- (1.) Under Notification No. 224 dated 23/6/1988, unwrought zinc is exempt from duty when it is manufactured from zinc dross, zinc ash or residues thereof "on which the duty of excise leviable under the said Schedule, or the additional duty leviable under the Customs Tariff Act, 1975, as the case may be, has already been paid".
(2.) It appears that by an earlier Notification No. 19 of 1988 dated 1/3/19888, goods falling within Ch. 26 of the Schedule to the central Excise Tariff Act, 1985 were exempted from the whole of the duty. The learned counsel for the respondent says that zinc ash falls within Ch. 26 and he appears to be right.
(3.) In this case, the respondent manufactured unwrought zinc from zinc ash which enjoyed exemption from duty by virtue of Notification No. 19 of 1988. The question is whether the Respondent is entitled to the benefit of Notification No. 224 of 1988. In other words, can it be said in this case that the unwrought zinc manufactured by the respondent has been manufactured out of zinc ash on which duty of excise has already been paid;