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TMI Blog2012 (4) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... alcohol is not an excisable item at all. Thus the reference to potable alcohol as an exempted item by the lower adjudicating and appellate authorities is totally incorrect. Consequently, no Cenvat credit of duly paid on molasses can be taken under the Cenvat Credit Rules, 2004, in respect of molasses used in the manufacture of potable alcohol, as the Central Excise Act, 1944 and the Cenvat Credit Rules apply to excisable goods and not to non-excisable goods. Availment of Cenvat credit was void ab initio. - Unless all the relevant facts mentioned above are ascertained, the quantum of eligible refund can not be determined. Therefore, the matter is remanded back to the original adjudicating authority for fresh consideration after ascertainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of such final products at the time of clearance from their factory. Therefore, the appellant is not entitled for refund of the amount paid by them on the clearances of the exempted product under Rule 6(3)(a) of Cenvat Credit Rules, 2004. The case was adjudicated by the adjudicating authority who held that potable alcohol is an excisable item but exempted item under CETH 2207.1090. He further held that an amount of Rs. 3,56,244/- is barred by time as the appellant has filed the refund claim after a period of one year from the date of payment of duty. The appellant preferred an appeal against the said order before the lower appellate authority. The ld. Appellate authority noted that an amount of Rs. 3,56,244/- is barred by time as the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot cover alcoholic liquors that for human consumption . Further entry 84 of List 1 (Union List) the Seventh Schedule to the Constitution itself makes it clear that alcoholic liquors for human consumption is outside the purview of Central Excise levy. Thus, potable alcohol is not an excisable item at all. Thus the reference to potable alcohol as an exempted item by the lower adjudicating and appellate authorities is totally incorrect. Consequently, no Cenvat credit of duly paid on molasses can be taken under the Cenvat Credit Rules, 2004, in respect of molasses used in the manufacture of potable alcohol, as the Central Excise Act, 1944 and the Cenvat Credit Rules apply to excisable goods and not to non-excisable goods. Availment of Cenvat cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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