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2018 (5) TMI 468 - AT - Central ExciseDemand of duty - captive manufactured goods (moulds) cleared to their job workers without payment of duty - extended period of limitation - revenue neutrality - Whether in the facts and circumstance of the case and evidences placed on record, Member (Judicial) is correct in holding there being Revenue neutral situation, in terms of Rule 4(5) (a)/(b) of Cenvat Credit Rules, 2004, the appellant is not required to reverse Cenvat credit? - difference of opinion - majority order. Held that: - the provisions of clause (b) of sub-rule 5 of Rule 4 of Cenvat Credit 2001 provide that if moulds are brought into the factory by a manufacturer, he is eligible for availment of Cenvat Credit of duty paid on the same. Further, the manufacturer of the goods is required to pay Central Excise duty on the goods manufactured. Incidentally, in the present case, the manufacturers of moulds and the legal entity eligible to avail Cenvat Credit of duty so paid is one and the same, on following all the provisions of law, the situation emerges that the appellant is required to debit their Cenvat Account for payment of Central Excise duty on the moulds manufactured by them and removed to the job-worker under said provisions of Rule 4 (5) (b) and further they are eligible to take Cenvat Credit of the same duty paid. The situation is Revenue neutral. In view of the majority decision, the appeal is allowed.
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