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TMI Blog2016 (8) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... olume of ethyl alcohol. Therefore, it is very clear from the observation of Hon'ble Supreme Court that ethyl alcohol and rectification spirit are one and the same. Hence,the rectified spirit which is not used for human consumption is nothing but ethyl alcohol and is finding place in tariff item no. 22072000. - Decided in favour of appellant with consequential relief X X X X Extracts X X X X X X X X Extracts X X X X ..... n which duty of excess is paid the CENVAT credit gets snapped by coming into existence of product not finding place in Central Excise Tariff. Therefore, CENVAT credit on inputs and capital goods and input services going into manufacturer denatured spirit are not available to the appellants. Therefore, the appellants were served with the show cause notice No.28/Commr./Alld./2012 dated 14.08.2013 proposing recovery of allegedly wrongly availed CENVAT credit of ₹ 9,51,11,791/-with proposal for payment of interest and imposition of penalty. The said show cause notice was adjudicated through Order-in-Original No. 57/Commr./Lko/CX/2014-15 dated 13.03.2015 which is impugned order. The appellant submitted their defense before the original aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heard the learned counsel for appellant. He has reiterated his argument before the original authority and in the grounds of appeal and submitted various case laws. He has also submitted copy of Apex Court's ruling in the case of State of Uttar Pradesh and others Vs. M/s Modi Distillery etc. [1996 U.P.T.C.-312] he stated that in para 9 of the said ruling the Hon'ble Supreme Court has given its observation about ethyl alcohol which clearly establishes that rectified spirit is nothing but ethyl alcohol and ethyl alcohol is finding the place in said tariff item 22072000. Therefore, rectified spirit cannot be presumed to be not having place in Central Excise Tariff with effect from 01.03.2005. 5. Heard the learned authorized representa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no.2204.90. As stated above, 2204.90 covers ethyl alcohol except one for human consumption and which are undenatured. Therefore, the issue to be decided is whether ethyl alcohol and rectified spirit are two different commodities or one and the same commodity. We find that the Hon'ble (supra) in para 9 has observed as follows : - "The ISI specifications had divided ethyl alcohol into several kinds of alcohol. Beverages and industrial alcohols were clearly and differently treated. Rectified spirit for industrial process was defined as spirit purified by distillation having a strength of not less than 95% by volume of ethyl alcohol." It is very clear from the observation of Hon'ble Supreme Court that ethyl alcohol and recti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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