2018 (3) TMI 443

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....ber (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri V. Ravindran, Advocate for the Appellant-Assessee Shri K. Veerabhadra Reddy, JC (AR) for the Revenue ORDER Per: Bench The above appeals filed against the same impugned order were heard together and are disposed by this common order. For sake of convenience, the parties herein are referred to as assessee and depart....

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.... goods and inputs have to be reversed. Show cause notice was issued alleging the same and raising demand to the tune of Rs. 3,66,99,070/- towards CENVAT credit allegedly involved on the capital goods that were said to have been moved to the other unit i.e. Formulation Unit pursuant to bifurcation and a demand was raised to the tune of Rs. 49,90,033/- being CENVAT credit on inputs lying in stock me....

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....ate or correspond to the Annexure attached to the show cause notice. Even going by the Annexure, the demand in respect of capital goods / inputs in the Formulation Unit would be much less. Further, it is submitted by the ld. counsel that during the pendency of these proceedings, both these units have again merged into one unit and that in any case the whole exercise is only a revenue neutral situa....

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....tion Unit have to be reversed. 5. Heard both sides. 6. The show cause notice alleges violation of Rule 3(5) of CENVAT Credit Rules stating that the assessee has not reversed the credit when the capital goods / inputs were transferred from API unit to the Formulation Unit. In reality, no such actual transfer has taken place and the appellant has merely bifurcated the single unit into two sepa....