https://www.taxtmi.com/caselaws?id=115458 Uncharged batteries sent to job workers for charging were cleared under the prescribed Modvat procedure, with debit made in the Modvat account on removal and reversed on receipt of the charged batteries. The reasoning that charging did not amount to a material change was rejected as inconsistent with the scheme, because the initial debit would have had no basis if the goods were treated as complete products at removal. The transaction was treated as revenue neutral since duty was paid when the charged batteries were later cleared, and the demand of duty and penalty was accordingly not sustainable. en-us Fri, 20 May 2005 00:00:00 +0530 Tue, 29 May 2012 17:27:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115458 Uncharged batteries sent to job workers for charging were cleared under the prescribed Modvat procedure, with debit made in the Modvat account on removal and reversed on receipt of the charged batteries. The reasoning that charging did not amount to a material change was rejected as inconsistent with the scheme, because the initial debit would have had no basis if the goods were treated as complete products at removal. The transaction was treated as revenue neutral since duty was paid when the charged batteries were later cleared, and the demand of duty and penalty was accordingly not sustainable. Case-Laws Central Excise Fri, 20 May 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115458