Duty Exemption Denied for Job Work Transfers Despite CENVAT Credit Claims; Revenue Neutrality Argument Fails

HC dismissed appellant's plea regarding duty exemption on goods transferred for job work. The court rejected the revenue neutrality argument based on CENVAT credit entitlement, holding that such interpretation would undermine the entire CENVAT credit scheme. The notification's benefits ceased once goods left the factory premises, even for job work. The concurrent findings by adjudicating authority, appellate authority, and Tribunal established that duty payment was mandatory at the time of clearance, regardless of subsequent use in production. The appellant's admission of revenue neutrality itself proved duty liability, as there was no valid justification for non-payment when sending goods for job work as required by law. .....

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