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TMI Blog1991 (2) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... ing three separate units, viz. a Sugar Factory manufacturing Sugar and Molasses, a Distillery where ethyl alcohol is manufactured from molasses and an Acetone Plant to manufacture Acetone from Ethyl Alcohol. They are preparing proforma invoices for the removal of Molasses from sugar factory to the distillery and for the removal of Ethyl Alcohol to the Acetone Plant and the transactions between the three divisions are made at the prices fixed by the Government of India under the Molasses Control Order, 1961 and Ethyl Alcohol Price Control Order, 1971. The Govt. of India introduced a new scheme money credit of Ethyl Alcohol under the provisions of Section AAA to Chapter V of Central Excise Rules, 1944 vide Notification 231/87, dated 1-10- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent divisions of the same unit. Therefore, he rejected the appeal. 2. Shri K.P. Joshi, the Ld. Counsel represented Krishana Sahakari Sakhar Karkhana and Shri A.P. Kumtakar, Ld. Consultant appeared for Rajaram Bapu Patil SSK. It was submitted that the stand taken by the Department in interpreting the Notification 231/87 makes the concession designed for such factories as the appellants totally nugatory. On the other hand, the intention of the Government was made clear by a subsequent amendment to the Notification 231/87 issued on 1-11-1989 by which this clause was deleted from the Notification. They also cited and relied upon the copy of the Departmental clarification in Trade Notice No. 224/90, dated 23-7-1990 issued by the Pune Collecto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he concession extended to chemical units utilising indigenous ethyl alcohol. 3. Shri L. Narasimha Murthy, Ld. JDR contended that the notification clearly required that the price fixed by the Government of India should have been paid on the molasses or on the alcohol. In the present cases of the appellants, three units are merely divisions of the same factory. The proforma invoices on which the materials were transferred, are not sales invoices denoting the transfer of the ownership of the material from one person to another. Therefore, the lower authorities were correct in their interpretation. The Ld. D.R., relied upon the well-settled legal position that there is no intendment in a notification and that an exemption notification has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of indigenous Ethyl Alcohol; (ii) the credit shall be taken only in respect of such Ethyl Alcohol for which the manufacturer has paid the price notified under the order of the Govt. of India in the Ministry of Industry (Deptt. of Chemicals Petro-Chemicals) No. 15021/6/87-Ch. II Desk, dated the 29th September, 1987: Provided that where the Ethyl Alcohol is produced from molasses inside the factory where the said final products are manufactured, the credit may be taken in respect of Ethyl Alcohol produced from such molasses for which the manufacturer has paid the price notified under the order of the Government of India in the Ministry of Industry (Department of Chemicals and Petro-Chemicals) No. 15021/29/87-Ch. II Desk, dated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cohol for which price is notified by the Government of India, has been paid by the manufacturer which is the same condition for captively consumed Ethyl Alcohol also. The question is one of first of all determining whether at all the appellants, herein, come within the purview of the Notification. If they do, only thereafter, the question of interpreting the Notification liberally with reference to the intention thereof, or interpreting it in such a way as not to make the object of the Notification nugatory, will arise. In taking this view, the decision of the Supreme Court in the case of Union of India v. Wood Papers -1990 (47) E.L.T. 500 (SC) is of importance and provides a suitable guide. The Supreme Court observed Literally exemption i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 3-8-1990 of the Meerut Collectorate, which is reproduced below: It has been brought to the notice that money credit under Rule 57K is being denied to units who are manufacturing molasses, then alcohol and then chemicals within the same factory on the ground that there is no sale of either molasses or ethyl alcohol manufactured within the same factory and thus price is not paid in accordance with condition (ii) to Notification No. 231/87-C.E., dated 1-10-1987 and proviso to said condition (ii). The matter has been examined. It is observed that the intention behind the money credit scheme under Notification No. 231/87-C.E., dated 1-10-1987 and Trade Notice No. 91/87, dated 3-11-1987 was basically to give relief of the excise duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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