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2018 (11) TMI 151 - AT - Central ExciseValuation - parts cleared from the Unit-I to Unit-2 - For the period prior to 01/02/2000, case of Revenue is that the goods be valued on the basis of cost of production by adding the element of profit - For the period w.e.f.01/07/2000, Revenue was of the view that the valuation was required to be done in terms of Rule 8 of the Central Excise Valuation Goods, 2000, which provides for determination of value @ 115% of the cost of production. Held that:- The Large Benches of Tribunal in the case of Jay Yushin Ltd. vs. Commissioner of Central Excise, New Delhi [2000 (7) TMI 105 - CEGAT, COURT NO. I, NEW DELHI] has held that when the goods are cleared from one unit to another belonging the same manufacturer, the situation is one of revenue neutrality, inasmuchas any differential duty paid by the first Unit will be available to the second Unit as credit. It has been held that the demand itself is unjustified under such circumstances. Revenue has raised serious objection for allowing the benefit of Revenue neutrality - Revenue neutrality can be considered for only those cases where the clearance is made from one unit to another both belonging to the same manufacturer - the present appeal may be allowed on the argument of Revenue neutrality. Appeal allowed - decided in favor of appellant.
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