To get the front sight/bayo lugs off isn't too difficult. Safety disclaimer - make sure the rifle is unloaded. Remove the stock so you don't ding it up and remove the bayonet from the mount.
There are two pins in the assembly. One runs vertically through the bayonet lugs and the other horizontally just below and slightly to the rear of the front sight hood.
These need to be driven out with the proper sized pin punch. Do this carefully so you can salvage parts if you want to put things back later.
Once the pins are out, using a shot filled, dead-blow mallet that's plastic covered so it won't mar the surfaces, place the muzzle on a block of hardwood to keep from buggering up the crown and using the dead-blow mallet, drive the bayonet lug/front sight assembly off toward the muzzle end of the barrel. Hit the rear of the bayonet lugs with the mallet. The barrel is very slightly tapered, and once you get the assembly loose, it will be easy to get it to come completely off the barrel with a few lighter taps. (You will most likely have to really hit it hard a few times to get it moving.)
The barrel under where the assembly was will most likely still be unblued, so you might want to blue it to match the rest of the barrel - it will certainly look a lot better.
Pix are of my "scout rifle" after removing the assembly and also of the removed assembly showing where the pins are.
I have since cut the front sight assembly down a bit, removing the bayonet lugs. I cut it about 3/4" behind the front sight and re-installed just that part. I was originally going to leave it off, but as someone mentioned in another thread, a true "scout rifle" has provisions for back up iron sights. He made an extremely low profile bolt handle and installed a Lyman peep sight on the rear of the receiver. I plan on duplicating this so if the scope (BSA 3-7 X 32) fails, I'll at least have a quickly available backup. With the front sight re-installed, this also facilitates the installation of one of those AK-style, clamp on muzzle brakes that locks around the front sight to keep it on the rifle if I decide to do that. I put one of Tickbite Supply's rubber butt pads on it and so far, even with heavy ball ammo, recoil is very manageable, so I may not bother with the muzzle brake as it would channel the fireball upward and rearward a bit. Might smoke up the scope.