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TMI Blog2013 (4) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... recognized by Central Excise law, if one unit clears its capital goods 'as such' to another, it has to reverse the CENVAT credit taken thereon. of course, the recipient unit can take such credit. Ultimately, the situation emerges as revenue neutral. On the facts of the present case as already discussed, there is a revenue-neutral situation and, therefore, the Department will not be justified in enforcing the subject demand of duty against the appellant. - Decided in favor of assessee. - E/94/2010 - 407/2012 - Dated:- 15-6-2012 - P.G. Chacko, J. S. Loknath, CA for the Appellant M.M. Ravi Rajendran, Dy. Commissioner (AR) for the Respondent P.G. Chacko, Judicial Member 1. This appeal filed by the assessee is agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant submits that only the main unit has been clearing the final products on payment of duty and that all other units have been undertaking job work on the inputs and supplying semi-finished products to the main unit. Though the job-worker units are separately registered with the Department as manufacturing units, they are not independent manufacturers and hence not maintaining separate CENVAT credit accounts. These units do not have to pay duty on the job-worked goods which are supplied to the main unit. The job-worker units do not undertake any independent manufacturing activity either. On these facts, the learned consultant submits that the impugned demand is liable to be set aside on the ground of revenue neutrality. In any case, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the units of the company are undertaking a manufacturing activity. Admittedly, all the units are separately registered with the Department. Therefore, all of them are registered manufacturers of Tungsten and Molybdenum wires. Each unit, therefore, has to maintain the relevant statutory records including CENVAT credit accounts. Each unit is entitled to take CENVAT credit on the capital goods and inputs received by it from another unit and is liable to pay duty of excise on the manufactured products. of course, such duty can be paid by utilizing CENVAT credit. In this scenario recognized by Central Excise law, if one unit clears its capital goods 'as such' to another, it has to reverse the CENVAT credit taken thereon. of course, the recipie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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