2008 (8) TMI 952 - AT - Central Excise

Summary

Issues involved: Admissibility of Modvat Credit on levy molasses used in the manufacture of rectified spirit for Indian made foreign liquor (IMFL) and liability to pay duty at 8% on the value of rectified spirit cleared for IMFL.

The appeal was filed against the impugned order where the Commissioner (Appeals) held that Modvat Credit was admissible on the levy molasses used in the manufacture of rectified spirit for IMFL, and the appellants were liable to pay duty at 8% on the value of the rectified spirit cleared for IMFL as per Rule 57CC of the Rules.

The Revenue contended that the respondents were not entitled to credit for molasses used in the manufacture of non-excisable country liquor. The Tribunal, in previous cases, had already settled this issue in favor of the respondents, stating that they were entitled to avail Modvat credit on levy molasses and were liable to pay duty at 8% on the rectified spirit cleared for IMFL. The appeal was dismissed based on these precedents.