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TMI Blog2017 (5) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... cal) Shri Rajeev Ranjan, Joint Commissioner (AR)for Appellant Shri Bipin Garg, Advocate, for Respondent ORDER Per: Anil Choudhary The present appeal is filed by the Revenue against Order-in-Original No. 03/COMMR./LKO/CX/2013-14 dated 19/08/2013 passed by Commissioner of Central Excise Customs, Lucknow. 2. Heard the parties. 3. The brief facts of the case are that the respondent are having composite unit comprising of sugar mill and distillery division. They are engaged in the manufacture of Sugar and molasses, ethyl alcohol, rectified spirit and Denatured Absolute Alcohol. The show cause notice is covering a period from August, 2012 to May, 2013. They undertake manufacture of Sugar and Molasses in Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 manufacturer of excisable product in a continuous process, CENVAT credit is inadmissible. They have also contended that rectified spirit is finding place at tariff item no. 22072000 because ethyl alcohol and rectified spirit are not two different commodities. The original authority was not convi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. 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 strength. This led the Central Excise authorities to think that pre-denatured ethyl alcohol does not find placed in Central Excise Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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