9911796707
TMI Blog2011 (6) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... for the respondent Per: Mr. P.R. Chandrasekharan, There are two appeals filed by the department and both the appeals relate to the same subject matter. We are taking up both of them for disposal together. The orders-in-appeal involved are (i) Order-in-Appeal No. KKS(29) 29/GOA/02 dated 18.9.2002 and (ii) Goa/BKS/20/2003 dated 01.07.2003. 2. The brief facts of the case are as follows. The assessee, Coalfax Lab, are engaged in the manufacture of after shave lotion which is covered under the Medicinal and Toilet Preparations (excise duty) Act 1955. The officers attached to the Directorate General of Central Excise Intelligence, West Zone, visited the factory of the assessee and noticed that they were manufacturing denatured alcoho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Appeals) who vide his order in appeal no. 20/03 dated 1.7.2003 allowed the appeal and set aside the duty demand on the ground that heading no. 22.04 covers 'ethyl alcohol whether denatured or not' whereas the appellants are procuring fully manufactured ethyl alcohol and denaturing them by adding small quantity of di-ethyl pthalate (DEP). As the appellants are not manufacturing ethyl alcohol the product obtained in the factory by adding of di-ethyl pthalate in ethyl alcohol is not covered under heading No. 22.04 of the Tariff and therefore, no duty is payable on the denatured alcohol. The department is in appeal against the said order of the Commissioner (Appeals). 3. Ld. SDR submits that this Tribunal in case of. Accrapac (India) P. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Naik submitted a copy of Certificate of Analysis no. B 01/94 in respect of quality control specification for ENA received in their factory under Memo GRN no. 52 dated 07.08.2001 and also a copy of Certificate of Analysis no. B 01/98 in respect of quality control specification for denatured alcohol manufactured in the factory of M.s. CLIPL by adding 1% DEP to the consignment of ENA received as above. Shri Naik further confirmed that DEP is always added in the underground storage tanks containing ENA and never in the mixing vessels at the time of production of After Shave lotions and that DEP is used only as a denaturant for the manufacture of denatured alcohol.' He further submitted that denatured alcohol manufactured by adding 1% D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t sold at all nor is it known as such so as to attract excise duty liability. Therefore he submits that even on merits the respondent has a strong case and Central Excise duty liability is not attracted. 5. We have carefully considered the rival submissions. 6. As regards the first issue whether denatured alcohol obtained by adding 1% DEP on extra neutral alcohol is a manufactured product leviable to excise duty or not, this issue has been already decided by the Tribunal in the case of Accrapac case supra wherein it was held that such denatured alcohol emerging at an intermediate state is an excisable and marketable commodity. The said judgment was upheld by the Gujarat High Court also. Therefore, the dutiability of denatured alcoh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Standards Institution have prescribed specification IS8-182:1995 for cologne which inter alia states that alcoholic cosmetics preparations may contain denaturant which should conform to IS4117:1976 and the said specifies prescribed DEP as a safe denaturant used in the ratio of 1 litre per 100 litre, i.e., 1% DEP. From the statement of the Production Manager, the quality control test done by the respondent assessee and the BIS Standards described above, it is evident that the product manufactured by them is a marketable commodity. Otherwise all the prescribed quality specification test need not have been undertaken by the respondent assessee as required under various laws. It is also a fact that the respondent assessee is procuring identic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
