Liability of excise duty on scrap generated from cycle parts

Manager Accounts

Dear Experts

our organisation deals in manufacturing of auto parts cum cycle parts . we are not utilising cenvat on  purchases made for manufacturing of cycle parts neither paying duty on the finished cycle parts. Excise department contends that we are liable to pay duty on scrap generated from cycle parts manufacturing because we are dealing in auto parts also which is excisable. Department has given a reference of the notification in the same connection .Notification No. 89/95 dated 18/05/1995. Please advice whether we are liable to pay the duty on same. 

Please impart your valuable suggestions and enlighten me. 

Thanks & Regards


Ravi Kumar





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