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TMI Blog2012 (12) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. IMFL is non-excisable product. Rule 57CC speaks of final product as exempt or chargeable to nil rate of duty. Thus it will cover only excisable product and not non-excisable product. Hence, we hold that IMFL is not a final product in the instant case. We are therefore left only with the rectified spirit. Rectified spirit is an excisable product as it is classifiable under Chapter 22. Thus both the words "Exempt from the whole of duty of excise or chargeable to nil rate of duty" will be applicable to rectified spirit. Rectified spirit is also cleared as rectified spirit and therefore, an amount of 8% of the price shall be reversible. We accordingly hold that 8% of the sale price of extra neutral alcohol and rectified spirit which are char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of the molasses should have been reversed. 4. We find that this issue is now settled by the following decisions of the Tribunal: (a) CCE, Lucknow vs Kesar Enterprises Ltd reported in 2001 (130) ELT 93; and (b) Ugar Sugar Works Ltd, Belgaum vs CCE, Belgaum reported in 2004 (115) ECR 250 5. In the case of Ugar Sugar Works Ltd cited supra the Tribunal followed the earlier decision in the case CCE vs Kesar Enterprises Ltd cited supra and set aside the demand which is confirmed on the same ground. The Tribunal held as under: 6. We have carefully considered the submissions made by both the sides. We find that the issue to be considered in this case is whether the appellants are required to reverse actual amount of Modvat/Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied spirit being cleared for manufacture of IML in terms of Rule 57 CC of the Central Excise Rules. We also find that in case of Commissioner of Central Excise, Lucknow Vs. Kesar Enterprises Ltd (2001 (130) ELT 93) it was held that - "Any intermediate product can be an intermediate product for the purpose of manufacture of IMFL but by itself it is final product also. Rectified spirit is sold in the market. Thus it is an excisable product falling under chapter sub heading 2204.90. IMFL is non-excisable product. Rule 57CC speaks of final product as exempt or chargeable to nil rate of duty. Thus it will cover only excisable product and not non-excisable product. Hence, we hold that IMFL is not a final product in the instant case. We a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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