1998 (12) TMI 236

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..... ember (T)]. The appellant manufactures acetic acid from molasses which it obtained from a sugar factory. In the process of manufacture of acetic acid from molasses ethyl alcohol comes into existence. Appellant took credit under Rule 57G of the duty paid on the molasses and applied it towards payment of duty on the acetic acid. Duty was not paid on the ethyl alcohol in terms of notification. .....

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..... or did not accept the assessee s contention and confirmed the demand. Collector (Appeals) confirmed his order. Hence this appeal. 3. The contention of the Advocate for the appellant that, even on the assumption that ethyl alcohol was made out of molasses on which Modvat credit was taken, there is nothing to prevent such an assessee from availing both Modvat credit and money credit has to be acce .....

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..... first two inputs as raw material or finished excisable goods. This requirement is satisfied. There is nothing in the rule relating to money credit that the input in question must necessarily be obtained from outside. The process of manufacture of ethyl alcohol and then acetic acid from molasses were not explained to us and therefore we are not in a position to hold whether ethyl alcohol emerges a .....

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