2005 (5) TMI 441 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 231/87-C.E. regarding money credit for Ethyl Alcohol and Denatured Spirit usage.

In this case, the appellants were engaged in manufacturing products specified in Notification No. 231/87-C.E., allowing credit for Ethyl Alcohol used in production. The dispute arose when the appellants claimed money credit for Denatured Spirit used in manufacturing Ethyl acetate and Acetaldehyde. The department disagreed with the claim, allowing credit only for Ethyl Alcohol content. The original authority supported the appellants' claim, but the first appellate authority ruled in favor of the department, limiting credit to Ethyl Alcohol content. The appellants appealed this decision. The consultant argued that the Notification did not differentiate between Ethyl Alcohol and Denatured Spirit, while the department contended that the benefit applied only to Ethyl Alcohol content. Referring to a previous Tribunal decision, the judge noted that the benefit was indeed limited to the Ethyl Alcohol content of the input, not the denaturing agent. As the Tribunal's interpretation remained unchallenged, the judge upheld the lower authority's decision and dismissed the appeal.