Burden of proof on non-duty-paid scrap defeats denial of concessional duty benefit under the notification

Concessional duty benefit under the relevant notification was available for copper scrap purchased from the open market because the assessee asserted that the inputs were duty paid and the record did not establish otherwise. The Revenue bore the burden of proving that the scrap was non-duty paid, but it produced no evidence or investigation report showing that the relevant inputs were clearly identifiable as non-duty paid. In the absence of such proof, denial of the notification benefit could not be sustained, and the assessee was entitled to the concession.

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Issues: Whether the assessee was entitled to concessional duty benefit under the notification in respect of copper scrap purchased from the open market, and whether the Revenue had discharged the burden of proving that such scrap was non-duty paid.

Analysis: The claim for concessional duty rested on the assessee's assertion that the raw material was duty paid scrap purchased from the open market. The record contained no finding or investigation establishing that the scrap was clearly identifiable as non-duty paid. Once the assessee asserted duty payment, the onus shifted to the Revenue to prove the contrary. In the absence of any evidence or investigation report showing that the relevant inputs were non-duty paid, the denial of the notification benefit could not be sustained.

Conclusion: The assessee was entitled to the concessional duty benefit and the Revenue's appeal failed.

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