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2013 (4) TMI 246 - CESTAT, BANGALORERemoval of capital goods as such to another units - Reversal of Cenvat Credit - whether the main unit was liable to reverse the Cenvat credit taken on the capital goods at the time of its clearance under delivery challan to the other unit. Held that - Admittedly, all the units are separately registered with the Department. Therefore, all of them are registered manufacturers. Each unit, therefore, has to maintain the relevant statutory records including Cenvat credit accounts. Each unit is entitled to take Cenvat credit and is liable to pay duty of excise on the manufactured products. 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 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.
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