2016 (7) TMI 1166 - AT - Central Excise

Excisablity - rectified spirit which is manufactured from molasses - entitlement to exemption notification 67/95-CE dated 16.3.1995 - waiver of predeposit - Held that - Considering that the matter is of legal interest and interpretation of the statute and also keeping in view the order of the Tribunal and also the Apex Court s decision in of Commissioner Vs. Sakthi Sugars Ltd. (2016 (1) TMI 16 - SUPREME COURT OF INDIA ) as well as the deposit stated above to have been made subject to verification by Revenue there shall be waiver of predeposit of balance amount during the pendency of the appeal. So far as early hearing application is concerned since stay application has been disposed today that has become infructuous and disposed accordingly.

Summary

Issues:
1. Whether rectified spirit manufactured from molasses is excisable goods and exempted.
2. Whether exemption notification 67/95-CE applies to molasses used in manufacturing rectified spirit.
3. Imposition of penalty under Rule 25 of Central Excise Rules.

Analysis:
1. The issue in Appeal No. E/40226/2014 was whether rectified spirit manufactured from molasses is excisable goods and exempted. The appellant argued that when goods become exempt, they have a similar status of excisability, and there should be no levy of 10% of the value of the goods. The appellant relied on a previous decision by the Bench in the case of Rajshree Sugars and chemicals Ltd. & Ors. Vs. Commissioner of Central Excise & Ors.

2. The learned counsel referred to a decision by the Hon’ble Supreme Court in the case of Commissioner Vs. Sakthi Sugars Ltd., which affirmed the benefit of no levy of 10%. The counsel highlighted that an amount of ?5 crores had been paid during the pendency of the appeal and appropriated in the adjudication order.

3. The Revenue did not provide any instruction regarding seeking an appeal remedy against the previous decision in the case of Rajshree Sugars and chemicals Ltd. & Ors. The Tribunal considered the legal interest and interpretation of the statute, along with the Apex Court’s decision in Commissioner Vs. Sakthi Sugars Ltd. The Tribunal decided to waive the predeposit of the balance amount during the appeal, subject to verification by the Revenue.

4. The Tribunal noted that the matter required further examination and decided that the high demand cases should be listed for disposal when the regular Bench sits, to ensure expeditious delivery of justice. The stay application was disposed of as infructuous, and the Registry was directed to take necessary steps for early disposal of the case.