9911796707
TMI Blog2003 (7) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... tilization for payment of duty on goods manufactured there. We consider the entire proceedings unwarranted. The appeals are accordingly allowed. - Justice K.K. Usha, President and Shri C.N.B. Nair, Member (T) [Order per : C.N.B. Nair, Member (T)]. - The appellants manufacture Alloy Steel Castings in two units located in Lucknow in UP and Bhiwadi in Rajasthan. At times, the rough castings manufactured in one unit are sent to the other for carrying out certain finishing processes. The removal of the rough castings is on payment of duty and takes the duty paid in the first unit is taken as Modvat credit in the second unit. The second unit which receives the goods carries out the finishing processes like machining, hardening, testing etc. and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clearances made by the appellants from their Bhiwadi to the Lucknow unit were 'stock transfer'. The appellants state that these were not stock transfers but normal sale. The department has failed to establish that there was any undervaluation of the goods, as the department had not compared their value of clearances with other like-goods manufactured and cleared by the appellants to other buyers than the Lucknow unit. Further, I find that the department had not made any enquiry from the buyers' side to enable the department to prove that the appellants had cleared the castings to their Lucknow plant at undervalued rate. 4. Further, I find that in the instant case, the appellants had received the show cause notice dated 5-7-2001 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... barred in terms of Section 11A(1) ibid. In view of above, I hold the demand is time barred and therefore, I set aside the impugned order in toto." The facts in the present case are identical. Therefore, the findings in the previous order would apply to the present dispute also. In such a case, it was patently unjust to have directed the appellant to make pre-deposit of demanded amounts and to have rejected the appeals for failure to comply with that order. In any event, since this is a case of movement of goods from one unit to another of the same assessee under Modvat Scheme, the whole issue is revenue neutral inasmuch as whatever duty is paid in one unit is available in the next unit. In case the assessees were to pay the differential du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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