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TMI Blog2017 (3) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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 Sugar Mill and Molasses are further utilized in distillery division for manufacture of ethyl alcohol through the process of fermentation. The contention of revenue is that with effect from 1-3-2005 Central Excise Tariff Item No. 2207 20 00 covers ethyl alcohol and other spirit Denatured of any strength. Therefore, the product known as rectified spirit does not exist in Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. 2207 20 00 because ethyl alcohol and rectified spirit are not two different commodities. The original authority was not convinced with the arguments put forth by the appellant. He confirmed the demand and imposed penalty. Aggrieved by the said order-in-original the appellant is before us. 4. The grounds of appeal before us are more or less similar to their contentions before the original authority. One of the grounds states that tariff item no. 22072000 is provided for ethyl alcohol and other spirits, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter sub heading no. 2204.90 covered ethyl alcohol except alcoholic liquor for human consumption and undenatured ethyl alcohol. From 1-3-2005 Tariff Item No. 2207 20 00 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 place in Central Excise Tariff. We find that the show cause notice contended that rectified spirit is manufactured in between the process to manufacture denatured spirit and rectified spirit does not find place in Central Excise Tariff with effect from 1-3-2005 and therefore Cenvat credit is not admissible as inputs & input services and capital goods going into manufacture of rectified spirit and hence going into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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