- (1.) Heard learned Counsel for the parties.
(2.) This appeal is directed against the order of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi dated 7-5-2004. The following questions of law have been framed for consideration at the time of admission: "1. Whether the Tribunal was justified in facts and circumstances of the case to conclude that gun-metal scrap was not metal scrap out of capital goods on which Modvat credit was paid? 2 Whether in case no Modvat credit is availed, the respondents were still liable to pay excise duty on sale of gun- metal scrap under sub-heading 8002.20 of the Central Excise Tariff Act, 1985 as held by the Commissioner?"
(3.) The facts leading to this case are that during the period from 1-4-1997 to 30-9-2001, the assessee has sold certain gun-metal scrap along with other waste on which no duty was paid. A show cause notice was issued on 2-5- 2002 raising a demand of Rs. 21,98,714/- in respect of clearance of such waste and scrap of capital goods. However, at the final adjudication vide order dated 21-11-2002, the demand amounting to Rs. 6,36,624/- was only confirmed in respect of copper scrap, electrical cable scrap, gun-metal scrap and rubber/belting scrap. Rest of the demand was dropped.;