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TMI Blog2006 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal No. 22/2005 (VR) dated 22-11-2005, passed by the Commissioner of Customs & Central Excise, Visakhapatnam. The Revenue has filed an appeal against the Order-in-Appeal No. 2/2005(V-II) (D) CE dated 11-3-2005 passed by the Commissioner of Customs & Central Excise (Appeals), Visakhapatnam. Since the issue involved in both the appeals is one and the same, we are passing a common order. 2.Shri S.V. Ratnam, learned Advocate appeared for M/s. NCS Distilleries Pvt. Ltd. and Shri K.S. Reddy, JDR for the Revenue. 3.The unit is a Distillery, manufacturing Extra Neutral Alcohol and Denatured Ethyl Alcohol. The input is molasses. The unit takes Cenvat credit on the duty paid molasses. The molasses is used in the manufacture both Extra Neutral Al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing process. Since the assessees are availing Cenvat credit on molasses which is used in the manufactures for the end final product which carries nil rate of duty, the said credit appears to be inadmissible. On the above ground, a show cause notice dated 1-5-2001 was issued to the party. The Deputy Commissioner in his Adjudication order 3/2002 dated 31-1-2002, dropped the proceedings. The Revenue went in appeal against the above mentioned Adjudication order to the Commissioner (Appeals). The Commissioner (Appeals) in his Order-in-Appeal No. 2/2005 (V-II) (D) C.E. dated 11-3-2005, has rejected the Department's appeal. Hence the Revenue has come in appeal against the order of the Commissioner (Appeals). The duty involved is Rs. 81,64,105 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing process, then Cenvat credit shall not be allowed. In our view, the Commissioner reads many things with regard to the relevant Rules. The point is whether molasses on which Cenvat credit has been taken and is denied by the jurisdictional Commissioner is an input for both the products dutiable and exempted. There is no need to go into details and technicalities of the manufacturing process. The questions to be asked are :- (1)What are the final products. (2)Is there any common input. (3)Whether one product is exempted and the other chargeable to duty. In the present case, the final products are Extra Neutral Alcohol and Denature Ethyl Alcohol. Denatured Ethyl Alcohol is obtained by adding denatured element to "Heads & Tails" fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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