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2013 (12) TMI 1509 - HC - Central ExciseMODVAT credit - job work - N/N. 214/86-C.E. - Whether the CESTAT is right in giving relief of ₹ 8,32,966/- to the assessees without considering the procedure laid down in the Notification No. 214/86-C.E. (as amended), dated 25-3-1986? - Held that: - reliance placed in the decision of the case of Commissioner of Central Excise, Chandigarh v. Ranbaxy Labs. Ltd. [2006 (7) TMI 216 - PUNJAB AND HARYANA HIGH COURT], where it was held that the benefit availed by the assessee, of Cenvat credit of the duty paid on the input by the sister concern was not liable to be denied to the assessee on the strength of the N/N. 214/86-C.E., dated 25-3-1986. Whether the CESTAT is right in holding that Modvat credit availed by an assessee was exactly equivalent to the amount of Excise duty paid by the input manufacturer without availing exemption, the consequence being revenue neutral and hence there could be no demand for reversal of the credit? - Held that: - reliance was placed in the case of Commissioner of Central Excise & Customs, Vadodara v. Narmada Chematur Pharmaceuticals Ltd. [2004 (12) TMI 93 - SUPREME COURT OF INDIA], where it was held that what had been availed of by the assessee by way of Modvat credit, was in respect of the duty paid by the input-manufacturer not availing the exemption, and the fact being the revenue neutral, the question of reversing the claim made by the assessee did not arise. Appeal dismissed - decided against Revenue.
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