2012 (3) TMI 366 - AT - Central Excise

Excise duty liability on the molasses from which non Denatured Ethyl Alcohol is produced and exported - Held that - Goods exported cannot be considered to be exempted from whole of duty of excise leviable thereon or chargeable to NIL rate of duty. Goods can be exported without payment of duty in Bond or under claim of rebate that would not and cannot be interpreted to be removal of goods at NIL rate of duty or exempted fully from duty - Since there is an acceptance of the issue in the respondent s own previous case - Decided against Revenue

Summary

Issues involved: Excise duty liability on molasses for production of non Denatured Ethyl Alcohol.

The judgment by the Appellate Tribunal CESTAT AHMEDABAD involved a dispute over excise duty liability on molasses used for producing non Denatured Ethyl Alcohol and exported by the respondent. The first appellate authority upheld the order dropping the proceedings initiated by the show cause notice. The authority referred to a previous order in the respondent's own case where it was held that goods exported cannot be considered exempt from excise duty or charged at a NIL rate of duty. The Bench directed the ld. SDR to verify if the order had been appealed or accepted. The Commissioner of Central Excise confirmed that the order had been accepted, leading to the rejection of the Revenue's appeal. The cross objection was also disposed of. The judgment concluded with the rejection of the appeal and disposal of the cross objection, based on the acceptance of the issue in the respondent's previous case.