9911796707
TMI Blog2009 (6) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that- the appellant removed the capital goods to their new unit, where it was used in the manufacture of dutiable final product. Therefore, the appellant is eligible to avail the credit which is demanded in the present case. The entire exercise is revenue neutral and is futile. Therefore, the demand of duty and penalty are not warranted on the ground of revenue neutrality. Thus, the impugned order is set aside. The appeal filed by the appellant is allowed with consequential relief. - E/1449/2007-SM(BR) - 610/2009-SM(BR)(PB), - Dated:- 16-6-2009 - Shri P.K. Das, Member (J) S/Shri J.M. Sharma, Consultant with Roop Singh, Advocate, for the Appellant. Shri R.K. Verma, DR, for the Respondent. [Order].- The relevant facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer to their new unit where the capital goods were used for manufacture of finished goods. He submits that it is a transfer of capital goods inter-unit and the effect is revenue neutral. He relied upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise v. Textile Corpn. Marathwada Ltd. reported as [2008 (231) E.L.T. 195 (S.C.)]. He also relied upon the decision of the Tribunal as under:- (1) Hindustan Zinc Ltd. v. Commissioner of Central Excise, Jaipur-II [2008 (232) E.L.T. 687 (Tri.-Del.)] (2) New Chemi Industries Ltd. v. CCE, Daman [2008 (230) E.L.T. 505 (Tri.-Ahmd.)]. 3. Learned DR on behalf of the revenue reiterates the finding of the Commissioner (Appeals). He submits that the Larger Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th sides, find that the appeal can be disposed of on the point of revenue neutrality. Admittedly, the duty paid by the appellant was being availed as Modvat credit, which the other unit was in a position to utilize. The Tribunal in the case of PTC Industries Ltd. v. C.C.E., Jaipur-I - 2003 (159) E.L.T. 1046 (Tri.-Del.) has held that whatever duty is paid by one unit on sale of goods to the assessee's another unit is being available as credit to the other unit, there was no warrant for demanding duty. In the present case, we find that the zinc concentrate was only being transferred to the appellant's own unit and was not being sold at all. Whatever duty was being paid by the appellant was available as credit to them and nothing would go into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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