TMI Blog2003 (7) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... tings 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 finishi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cords and have heard both sides. In the facts of the case, we are of the opinion that the appeal themselves can be disposed of. Therefore, after waiving the requirement of pre-deposit, we take up the appeals for consideration. 4. In regard to duty demand for the earlier period, the Commissioner (Appeals) finding was as under : "3. I have gone through the case records, submissions made by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 period from 1-4-1998 to 3/2000. The adjudicating authority in the impugned order has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants, their Lucknow Unit would be taking Modvat credit. Thus, the findings of the adjudicating authority are not correct that the appellants had suppressed the facts from the Department. In view of the letter dated 20-5-1999 (supra), I am inclined to hold that the appellants had not suppressed the fact as alleged in the impugned order and accordingly, I hold that extended period is not availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme, 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 duty as demanded, the same amount would be available as credit in the second unit for utilization for payment of duty on goods manufactured there. We consider the entire proceedings unwarranted. The appeals are accordingly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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