9911796707
TMI Blog2012 (7) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 - - - Dated:- 30-1-2012 - Mr. P.G. Chacko, Mr. B.S.V. Murthy, JJ. Mr. M.M. Ravi Rajendran, Deputy Commissioner (AR), for the Revenue [Order per: B.S.V. Murthy]. M/s. Sri Hanumantha Kali Vara Prasad Babu Chemicals (P) Ltd. (assessee for short) is manufacturer of Denatured Ethyl Alcohol, Flent Spirit and Fusel Oil. They also manufacture Ethyl Alcohol other than denatured in various forms viz. Rectified Spirit, Extra Neutral alcohol and Impure Spirit. Investigation was taken up by the Revenue on the ground that the appellant had crossed the exemption limit of Rs. 300 lakhs in the previous financial year 2002-03 thereby making the assessee ineligible for exemption under Notification No. 8/2003-CE dated 01.03.2003 for the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However as regards penalties he took the view that suppression of facts, fraud or wilful mis-statement have not been established against the appellants since appellants might have been under a bona fide belief that the process undertaken in the buyer s tanker does not come under the purview of manufacture. Therefore he set aside the penalties. Both Revenue and the assessee are in appeal. Assessee is in appeal on the ground that the process of denaturing in the tanker does not amount to manufacture by them and therefore duty demand is not sustainable. Revenue is in appeal on the ground that appellant had deliberately mis-declared the turnover and had also not declared the fact of manufacture of denatured alcohol in their factory and therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory. It has also been noted by the lower authorities that the supervision by State Excise officials is required and unless the mixing takes place in the presence of excise officials and it takes place within the compound of the factory premises, the denatured spirit cannot be sold and cannot be moved out of the factory. Further the definition of the factory only includes the premises and the precincts thereof. Under these circumstances, the claim of the assessee that the process cannot be said to amount to manufacture and therefore no duty liability is attracted cannot be sustained. Accordingly appeal filed by the assessee is rejected. 3. As regards the appeal filed by the Revenue, if a view is taken that mixing of a denaturant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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