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TMI Blog2013 (8) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of any duty paid by the appellant on clearance of resins to them. Appeal allowed - decided in favor of appellant. - E/869/2009-DB - Final Order No. A/11175/2013-WZB/AHD - Dated:- 21-8-2013 - Shri M.V. Ravindran, Member (J) and H.K. Thakur, Member (T) Shri Mehul Jivani, CA, for the Appellant. Shri K.J. Kinariwalla, AR, for the Respondent. ORDER This Misc. Application is filed for out-of-turn hearing of Appeal No. 50/2009(Ahd-I)CE/ID/Commr(A)/ Ahd, dated 5-3-2009. 2. After hearing both sides for some time on the Misc. Application, we find that the issue involved in this case is falling in a narrow compass hence we allow the Misc. Application for out-of-turn hearing of the appeal and take up the appeal itsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Accountant submits that the demand is not confirmable on the appellant on the ground of revenue neutrality as it is undisputed that the appellant has cleared the resins to their own unit and if any duty is payable Cenvat credit would have been availed by their own unit. It is his submission that the question of revenue neutrality was not addressed to by the Lower Authorities and would submit that the decision of the Hon ble High Court of Gujarat in the case of Commr. of C. Ex. Cus., Vadodara-II. v. Indeos ABS Ltd. [2010 (254) E.L.T. 628 (Guj.)] is directly on the point. It is his submission that the said decision of High Court of Gujarat was carried in appeal by the Revenue to the Apex Court and Apex Court has dismissed the SLP as time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by adopting valuation under the provisions of Rule 8 of the Central Excise Valuation Rules. The valuation which has been adopted by the appellant was being erroneous, as confirmed from the facts that the appellant has paid the duty liability on being pointed out. We find ourselves in agreement with the submissions of ld. C.A. that question of demanding interest or penalty could not have arisen in this case, as the appellant herein has claimed revenue neutrality. We find that the contention raised by the appellant as to revenue neutrality has got strong force inasmuch as there is no dispute that clearance of resins was to their own sister unit. There cannot be, to our mind, any intention to evade duty on such clearance made to their own si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts lie in a narrow compass. The respondent was engaged in manufacture of glass bottles and glass vials at their factory situated at Kosamba. It was also manufacturing casting moulds which is a classified item under the Central Excise Tariff Act, 1985. The casting moulds were being utilized for manufacturing of the final product. The Excise authorities found when they visited the factory premises of the respondent on 22-3-2000 that during the period from 14-1-1997 to 26-6-2000, the respondent had clandestinely cleared the excisable goods namely the casting moulds to its sister unit at Jambusar. The respondent assessee admitted its liability and deposited an amount of ₹ 11,54,700/-. In the subsequent investigations the cost of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.1 That letter read as under : To The SUPERINTENDENT OF CENTRAL EXCISE DATE : 16-3-2000 3rd FLOOR SAMMRUDDHI BUILDING, NANPURA MAKAIPOOL SURAT RANGE-V, DIV-V Dear Sir, Sub : EXCISE DUTY ON PAYMENT ON MOULD CLEARED TO OUR JAMBUSAR PLANT ON VERIFICATION OF OUR STORES RECORDS, IT WAS NOTICED THAT CERTAIN MOULDS MANUFACTURED AT OUR WORKSHOP HAVE BEEN CLEARED TO OUR JAMBUSAR UNIT UNDER OUR CHALLAN WITHOUT PAYMENT OF DUTY. THESE MOULDS ARE REQUIRED FOR THE PURPOSE OF MANUFACTURE OF GLASS BOTTLES CLASSIFIABLE UNDER CHAPTER 70 OF THE CENTRAL EXCISE TARIFF ACT AT OUR JAMBUSAR PLANT. THESE MOULDS HAVE BEEN USED BY OUR JAMBUSAR UNIT IN THE MANUFACTURE OF GLASS BOTTLES HOWEVER THE DUTY ON THESE MOULDS HAVE NOT BEEN PAID AT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Limited v. CCE, Mumbai - 2010 (262) E.L.T. 751 (Tri.-Mumbai), it was held that clearance of cenvated inputs to sister unit without payment of duty result in revenue neutral situation and no mala fide can be attributed for invocation of longer period of Limitation. At this stage, we may refer to the Hon ble Supreme Court decision in the case of CCE, Pune v. Coca-cola (India) Pvt. Limited - 2007 (213) E.L.T. 490 (S.C.). It was held that, inasmuch as the excise duty payable on beverage basis/concentrate was available as Modvat credit to the manufacturer of beverages, the consequence of payment of excise duty after availing Modvat credit was, revenue neutral. The appeal of the Revenue on above ground was dismissed At this stage, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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