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TMI Blog2017 (5) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... . Heard the parties. 3. The brief facts of the case are that the appellants are having composite mill comprising of sugar Division and a Distillery Division. They are engaged in the manufacture of V.P. Sugar and molasses, Rectified Spirit (RS), Special Denatured Spirit (SDS), Ordinary Denatured Spirit (ODS) and Extra Neutral Alcohol (ENA). The details of show cause notices and dispute is as follows:- Sl. No. Appellant Period Duty/Cenvat in dispute Penalty 01. Mankapur Chini Mills Ltd. August 2012 to July 2013 Rs.3,68,36,663/- +Rs.4,57,06,768/- (Total Rs. 8,25,43,431/-) Equal to tax 02. Balrampur Chini Mills Ltd. September 2012 to June 2013 Rs.5,41,04,108/- + Rs.2,96,71,864/- (Total Rs. 8,37,75,972/-) Equal to tax 03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process of manufacture where they have stated that the process of manufacture of denatured spirit from fermentation of molasses is continuous process. On fermentation, ethyl alcohol is manufactured which is also called as rectified spirit. So as to make rectified spirit unfit for human consumption, denaturing is done by mixing rectified spirit with certain chemicals and they are not clearing rectified spirit at all and rectified spirit is nothing but ethyl alcohol. They, further, contented that there are no provisions in the CENVAT credit Rules that if a non excisable product emerges in between the manufacture of excisable product in a continuous process, CENVAT credit is inadmissible. They have also contended that rectified spirit is findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have taken the rival contentions into consideration and also have gone through the case records and paper books submitted during the hearing. We find that the appellant have a composite unit where sugar and molasses are manufactured. Further the molasses on fermentation in the distillery, ethyl alcohol is obtained. Ethyl alcohol is denatured by mixing certain chemicals which make ethyl alcohol unfit for human consumption. Before 01.03.2005 chapter Sub heading 2204.10 covered denatured ethyl alcohol of any strength and chapter Sub heading no.2204.90 covered ethyl alcohol except alcoholic liquor for human consumption and undenatured ethyl alcohol. From 01.03.2005 tariff item no.22072000 covered ethyl alcohol and other spirits denatured of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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