9911796707
TMI Blog2017 (10) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... 072000 - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on Molasses captively consumed with proposal for payment of interest and imposition of penalty. The said show cause notice was adjudicated through Order-in-Original, which is impugned order. The appellant submitted their defence before the original authority. They have stated that the process of manufacture of denatured spirit from fermentation of Molasses is a 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. Rectified spirit is nothing but Ethyl Alcohol. They are clearing denatured spirit on payment of duty and on clearance of rectified spirit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing but Ethyl Alcohol and Ethyl Alcohol is finding the place in said Tariff Item No.22072000. Therefore, rectified spirit cannot be presumed to be not having place in Central Excise Tariff with effect from 01.03.2005. 7. Heard the learned authorized representative of Revenue. He reiterated the findings of the Order-in-Original. 8. We have taken the rival contentions into consideration and also have gone through the case records. 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 strength of not less than 95% by volume of ethyl alcohol."
9. It is very clear from the observation of Hon'ble Supreme Court that Ethyl Alcohol and rectified spirit are one and the same. We, therefore, hold that rectified spirit which is not used for human consumption is nothing but Ethyl Alcohol and is finding place in Tariff Item No.22072000. We, therefore, hold that the show cause notice is not sustainable. As a result, we set aside the impugned order and allow the appeal with consequential relief. No Costs.
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