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TMI Blog2009 (2) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... of the cylinders for some time they become unusable for the intended purpose and it would be a scrap unless it is got engraved, rechromed or reengraved. They have sent such worn out cylinders for the purpose of engraving, rechroming, reengraving to the job workers. The said job workers after completing the said operation and treating the goods as manufactured at their end had paid duty on value consisting of value of Base shell and job charges received for such engraving, rechroming and reengraving. Duty paid by the job workers at the time of clearing reconditioned printing cylinders has been taken by the respondent as credit. (b) The original authority held that the capital goods have not been cleared under Rule 3(4) for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned DR submits that the second time credit taken by the respondents is not in order. He submits that the capital goods though cleared after use by the respondents should be treated as cleared as such in terms of Rule 3(5) of Cenvat Credit Rules and they ought to have reversed the Cenvat credit originally taken by them on the printing cylinders. Since they have not reversed it, taking credit for the second time is not in order. Learned DR relies on the decision of the Larger Bench of the Tribunal in the case of Modernova Plastyles Pvt. Ltd. v. C.C.E., Raigad - 2008 (232) E.L.T. 29 (Tri.-LB). 4. Learned Advocate for the respondents submits that they were entitled to remove under Rule 4(5)(a) under challan for the purpose of reengraving, rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. cited supra applies to a case where the capital goods as such were sent to the job worker. In this case, the capital goods have not been cleared as such but after having been used for the intended purpose. If the same were not sent for reconditioning, the goods should have been scraped. 5.4 Even if Cenvat credit was reversed at the time of clearing the worn out printing cylinders, the same was available as Cenvat credit for the job worker and to that extent, payment of excise duty in cash will be reduced by the job worker. The entire duty paid by the job worker including amount paid from Cenvat credit becomes available again for being taken as Cenvat credit by the respondent. This will be a clear case of revenue neutrality as well. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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