2004 (9) TMI 545

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..... 2. The brief facts of the case are that M/s. Ashok Leyland Ltd., the respondents herein are manufacturers of motor vehicles etc. They cleared waste and scrap generated during the manufacture of the final products on payment of duty. It was found that the value adopted for the waste and scrap cleared to M/s. Ennore Foundries Ltd was at Rs. 6500/- per MT whereas the waste and scrap generated at the job worker's premises to whom the raw materials were supplied under Rule 57F(3) and not returned, was valued at higher price of Rs. 8700/- per MT. It was in these circumstances show cause notice was issued to the respondents proposing to demand differential duty of Rs. 68,93,812/- in regard to clearance made to M/s. Ennore Foundry adoptin....

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....tted that while the scrap sold by the respondents to M/s. Ennore Foundries are scraps such as milling, turning and swarf which have arisen during the course of manufacture of different components and can be used for melting and castings, the scrap cleared by the job worker premises were end bits and cut bits of plates and sheets which can be used directly for manufacture of components. He has submitted that the Department has not correctly appreciated the difference between two types of scraps. He has further submitted that the Commissioner (Appeals) has correctly appreciated the facts of the case and came to a conclusion that AC's decision to adopt a lower value for melting scrap based on minimum price as compared to higher price of Rs. 87....

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...., the scrap for which they adopted a sum of Rs. 8700/- per MT had a better market. He has also found that the Department has not brought out any evidence to show that the market price for the type of scrap cleared by the respondents was higher than Rs. 6500/- per MT. When the department was not able to discharge the burden cast on them by bringing in acceptable evidence that the scrap cleared by the respondents and those generated at the job worker's premises, were not different and were of same value, we do not find any force in the contention of the department that the respondents have adopted a lesser value for the scrap cleared by them to M/s. Ennore Foundries. We find that the lower appellate authority has correctly appreciated the fac....