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TMI Blog2017 (9) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise is a revenue neutral situation - This being the case, even if the appellant is directed to pay duty, other sister unit would be eligible for the credit. In the case of Jay Yuhshin Ltd. [2000 (7) TMI 105 - CEGAT, COURT NO. I, NEW DELHI], in a similar situation, the Larger Bench of the Tribunal has held that when there is revenue neutrality, the demand of duty is unsustainable. Demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the manufacture unprocessed cotton fabrics. They cleared all fabrics so produced to their 'A' and 'B' Units on payment of duty with effect from 1.3.2002. It was alleged by the department that the unprocessed cotton fabrics cleared from the appellants unit (C) to 'A' and 'B' Units undergo certain process like bleaching dyeing, printing etc. which amount to manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out the process of bleaching, dyeing and printing, the unprocessed fabric is cleared to the appellant's 'A' Unit for processing. Most of the fabrics thus received are sold at a unprocessed stage from the unit for domestic as well as export purpose. The duty is discharged on the unprocessed fabrics at the time of clearance from appellant's 'C' unit. At the time of receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat therefore, the demand raised is legal and proper. 4. We have heard the submissions made by both sides. 5. On considering the fact that the goods are cleared to the sister unit and also the fact that the appellant is eligible for credit on the duty paid, the entire exercise is a revenue neutral situation as contended by the learned counsel for the appellant. This being the case, even if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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