2008 (6) TMI 462 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, Ahmedabad rejected the appeal by the Revenue against the order passed by the Commissioner (Appeals). The appellant cleared goods to Unit No. 2 for job work after paying duty, which was required to be availed as Modvat credit by Unit No. 2. However, Unit No. 2 did not avail the credit and cleared processed goods without duty payment. The duty paid was required to be refunded to the appellant, and the Commissioner (Appeals) accepted this, except for a small amount barred by limitation. The Tribunal found no issue with the Commissioner's decision as the duty paid was not required or was to be taken as credit, making the situation revenue neutral.