2005 (3) TMI 584 - AT - Central Excise

Summary

Issues:
Appeal against duty confirmation for waste and scrap of capital goods under Rule 9(2) of Central Excise Rules.

Analysis:
The appellants contested the duty confirmation for waste and scrap of capital goods, arguing that the scrap in question was from capital goods on which no credit had been taken. They presented records proving that the capital goods were installed before 1-3-1994 when no credit was available for duty paid on such goods. The appellants submitted a detailed list of capital goods and their acquisition dates, which were verified by the Revenue authority. The Revenue contended that the scrap generated was from capital goods on which credit had been taken, as per the Commissioner's finding in the impugned order.

The Tribunal noted that the appellants had provided substantial evidence, including the list of capital goods, acquisition dates, and disposal dates, all verified by the Revenue authority. The evidence demonstrated that the capital goods were acquired before 1-3-1994 when no credit was permissible. The Revenue failed to present any contradictory evidence to challenge the appellants' claim, supported by documentary evidence and Revenue verification. Consequently, the Tribunal found the demand unsustainable and set it aside, ultimately allowing the appeal.

Therefore, the Tribunal ruled in favor of the appellants, emphasizing the importance of documentary evidence and Revenue verification in establishing the timeline of capital goods acquisition and disposal to determine credit eligibility. The absence of contradictory evidence from the Revenue further strengthened the appellants' case, leading to the appeal's success and the demand being overturned.