9911796707
TMI Blog2009 (7) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... ctified spirit and had availed inadmissible input credit of duty paid on Molasses, Furnace oil and Yeast. After due process of law, the Commissioner adjudicated the show cause notice issued to them and disallowed Cenvat credit of Rs.2,28,85,316/- (Rupees Two crore twenty-eight lakh eighty five thousand three hundred and sixteen only) under Rule 12 of Cenvat Credit Rules, 2001/2002. As the appellant had already reversed an amount of Rs.1,45,29,161/- (Rupees one crore forty-five lakh twenty-nine thousand one hundred and sixty-one only) on clearance of rectified spirit, the Commissioner appropriated the balance credit of Rs.83,56,155/- (Rupees Eighty-three lakh fifty-six thousand one hundred and fifty-five only). The period of dispute is Septe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Relying on the following case-law, it is submitted that when the department had accepted the duty paid by the appellants on the goods, one has to admit that they were the manufacturer of the said goods : (a) Sunpra Energy & Recovery Engg. Pvt. Ltd. v. CCE - 1996 (88) E.L.T. 551. (b) Biotech Synergy Ltd. v. CCE - 2004 (171) E.L.T. 400. (c) Natural Vitamins Ltd. v. CCE - 2005 (179) E.L.T. 326. 3.1 They had manufactured and cleared both exempted rectified spirit and dutiable denatured spirit. They had availed Cenvat credit on the inputs received and reversed the credit relatable to the inputs contained in the exempted rectified spirit when cleared, in accordance with the provisions of Rule 57CC and Rule 6 of the Cenvat Credit Rules, 2001 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this finding of the Commissioner is incorrect. It is noted by the Commissioner that VSL was liable to pay duty on denatured spirit as it was cleared from the factory. We are not able to agree with the finding of the Commissioner that the denatured spirit involved had not been manufactured in the factory of the appellant. During the period September, 2001 to 14-5-2004, VSL had cleared only 40,000 Ltrs. of denatured spirit. Unless M/s. VSL intended to clear both exempted and dutiable goods, there was no need for it to have availed credit on common inputs. Moreover, the Revenue did not stand to lose in any way if VSL availed credit as provided in the CCR. In Rochi Ram & Sons case (supra) the Tribunal had held that Cenvat credit was not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 6 of CCR did not apply to the appellants as it had manufactured only rectified spirit, for in his view, denatured spirit came into existence by the sole process of mixing rectified spirit with toxin. We are unable to agree with the Commissioner that the appellants had not manufactured denatured spirit, a dutiable item along with rectified spirit both of which were cleared by the appellants. In these circumstances, we hold that the impugned order denying Cenvat credit availed on inputs received by the appellants in terms of Rule 6 of CCR is in accordance with law. In these circumstances, we find the impugned order to be contrary to legal provisions. The same is set aside and this appeal allowed. (Operative portion of this Order was pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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