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TMI BlogAvailment & Utilisation of Cenvat Credit on Molasses in Composite Sugar Industry:X X X X Extracts X X X X X X X X Extracts X X X X ..... Composite Sugar Industry with sugar and distillery unit within the same premises. In sugar unit sugar and molasses are produced whereas in the distillery unit both excisable and exempted goods are produced. Sugar Unit: Sugar and Molasses produced in the sugar unit. Sugar is removed by payment of excise duty for domestic purpose. Molasses is an excisable by-product which is used as input in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distillery unit. As such for the use of captively produced molasses in the distillery unit, excise duty is paid and transferred to distillery unit. Distillery Unit: In the distillery unit captively produced molasses from the sugar unit is received as well as molasses from outside is procured for the production of final products are obtained likewise Liq. CO2, D.Spirit, D.Ethanol which are ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable goods and Ethyl alcohol /undenaturated rectified spirit (URS) which are exempted are produced.(As such molasses is used as input for production of both excisable and exempted goods as such the compliance under Rule 6 of CCR 2004 is necessary) Issue is: Cenvat Credit on captively produced molasses is not being utilized from past four financial years.( I am of the view that cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on molasses can be taken for the past period also since Cenvat Credit Rules have not prescribed any outer time limit for taking cenvat credit) Whileso the issue is whether the Cenvat Credit accumulated from past four financial years on captively produced molasses be utilized for payment of duty on the excisable final goods produced in the distillery unit and whether is it sufficient if in compli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance to Rule 6(3)(i) of CCR 2004 payment of amount equal to six percent or five percent(as applicable) of the value of exempted goods is paid/reversed and that any interest had to be paid on the amounts reversed or paid on the exempted goods(already removed) for the past periods and if any interest had to be paid what is the rate of interest and under which rule/section is the interest payable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any. Whether the cenvat credit on molasses be utilized for payment of excise duty on sugar? K.V.RAO 9493425611 kedari.venkatrao at the rate of gmail.com - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Whether you have got clarified in the above issue? If not please inform. - Availment & Utilisation of Cenvat Credit on Molasses in Composite Sugar Industry: - Query Started By: - venkata r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ao Dated:- 27-6-2014 Central Excise - Got 1 Reply - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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