Scrap duty demand upheld where claim of non-credit availed capital goods was unsupported by evidence.

Duty demand on scrap cleared without payment was sustained because the assessee failed to prove that the scrap arose from old and used capital goods on which no CENVAT credit had been taken. The claimed factual basis remained unsupported by evidence before the lower authorities and in appeal, so the challenge to the demand could not succeed. A party asserting that scrap originated from non-credit availed capital goods must substantiate that claim with proof; absent such evidence, the demand on the scrap is maintainable.

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Issues: Whether duty demand on scrap cleared without payment of duty was unsustainable on the ground that the scrap arose from old and used capital goods on which no credit had been availed.

Analysis: The appellant asserted that the scrap was generated from capital goods on which no credit had been taken, but no supporting evidence was produced before the lower authorities or in the appeal. In the absence of proof to substantiate the claim, the challenge to the duty demand could not succeed.

Conclusion: The demand was upheld and the appeal was dismissed.

Ratio Decidendi: A claim that scrap was generated from non-credit availed capital goods must be supported by evidence; absent proof, the duty demand on the scrap is sustainable.

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