There have been tests done, and evidence to show that it DOES infact remain concious.
For example, this scientist was getting decapitated, and asked a friend to see how many times he could blink after the head was severed.
He done it for 17 secs.
That is a complete myth! It never happened! Sorry you fell for it! Knocking a person unconscious is very easy to do without cutting their head off, imagine how easy it is to do while cutting the head off! I have heard of the myth you are quoting, it has been proven a myth many times over!! Sorry, but it simply is not possible.