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TMI Blog2007 (11) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... y denying the Cenvat credit availed by the assessee on 'in-house' manufactured Molasses during the period from 1-7-2005 to 31-3-2006. He has also imposed penalty. Appellants in Appeal No. E/146/2007 have like-wise challenged the Order-in-Original No. 3/2007 dated 14-2-2007 confirming demands by denying the Cenvat credit availed by the assessee of duty paid on 'in-house' manufactured Molasses during the period 1-10-2005 to 31-3-2006. He has also imposed penalty. There is also demand in respect of denatured spirit cleared during the said period. Appellants contention is that this very issue was decided in the case of M/s. Shri Hiranyakeshi Sahakari Sakkare Karkhana Niyamit v. CCE, Belgaum by Final Order No. 459/2007, dated 18-4-2007 in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder CSH 2204.10. However, in the restructured Tariff, both Rectified Spirit and Denatured Spirit are covered under the same Chapter Sub-heading 22072000. Therefore, the contention that Rectified Spirit has become non-excisable w.e.f. 1-3-2005 is totally wrong. We find that even though the Molasses is first converted to Rectified Spirit, while converting the same, Carbon Di-Oxide is first manufactured and the same is cleared on payment of duty. Further, part of the Rectified Spirit is converted into Denatured Spirit which is also sold on payment of duty. Therefore, it cannot be said that Molasses is used only in the manufacture of Rectified Spirit. In other words, Molasses is used as a common input in the manufacture of exempted Rectified S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l oil used to manufacture intermediate product steam which is further used for manufacture of final product or for any other purposes within the factory of production. In view of the above case law, there is no need for reversal of credit on any portion of furnace oil attributable to Rectified Spirit. 5. Summing up, we hold that credit availed on the Molasses and Furnace Oil is in order and there is no need to reverse it. In the above circumstances, the impugned order has no merit. There is no justification for imposition of any penalty or demand of interest under Section 11AB. Thus, we allow the appeal with consequential relief, if any. So also the findings recorded in Final order No. 459/2007, dated 18-4-2007 in M/s. Shri Hiranyake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the manufacture of the said Rectified Spirit is reversed, there is no violation of any provisions of law and the credit taken on Molasses cannot be denied. This issue is covered by the decision of this Bench in the case of NCS Distilleries/Estates Pvt Ltd. v. CCE, Visakhapatnam - 2007 (207) E.L.T. 400 (Tri.-Bang.) and the Final Order Nos. 56 to 59/2007 dated 30-11-2006 in the case of The Godavari Sugar Mills Ltd. & Others v. CCE. It is on record that the appellants had reversed total Cenvat credit of Rs. 1,05,51,223/- attributable to the molasses used in or in relation to the manufacture of 4078248 ltrs. of Rectified Spirit cleared without payment of duty. Therefore, we hold that the credit availed on Molasses is in order and there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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