9911796707
TMI Blog2009 (9) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... an, JCDR, for the Respondent. ORDER Heard both sides. The appellants are manufacturers of sugar who obtain molasses as a by product which in turn are used to produce Ethyl Alcohol, part of which is denatured and cleared on payment of appropriate excise duty. The department has raised a demand at the rate of Rs. 500/- per MT in respect of molasses which is used in the production of undenatured et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts if 8% is paid under Rule 57AD corresponding to earlier Rule 57CC. 4. The appellants have paid 8% on the rectified spirit but since the period is prior to the amendment of the Notification No. 67/95, the lower appellate authority has not allowed the benefit of Notification No. 67/95 to the appellants. The appellants have cited the following decisions in their support :- (a) & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carries nil rate of duty. We find this line of argument attractive as prima facie undenatured ethyl alcohol is outside the scope of the central excise levy. For the purpose of the main provision of Notification No. 67/95, we find that molasses will be covered under coloum 2 of the table as input, and undenatured ethyl alcohol will be covered under final products under coloum 3 of the table as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the undenatured ethyl alcohol (rectified spirit) cleared by the appellants without payment of duty is actually alcoholic liquor for home consumption. Subject to this aspect being verified, the appellants will be entitled to the exemption in respect of molasses under Notification No. 67/95 without being hit by the proviso thereon. For this limited purpose of verification, we set aside the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
