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TMI Blog2018 (5) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... -I-O No. 22/2010-CEX. Commr. Dt. 22.10.2010 E/86/2012 O-I-O No. 10/2011-CEX. Commr. Dt. 12.10.2011 E/3178/2012 O-I-O No. 76/2012-CEX. Commr. Dt. 30.08.2012 E/21647/2015 O-I-A No.GUN-EXCUS-000-APP-023-15-16, dt. 30.04.2015 E/21929/2015 O-I-A No. GUN-EXCUS-OOO-APP-092-15-16, dt. 12.08.2015 2. The relevant facts that arise for consideration, after filtering out unnecessary details are that appellant is a registered assessee manufacturer of sugar, during the course of such manufacture, various joint products and by products like molasses, industrial alcohol, ethanol etc, emerge. The period involved in all these appeals is from December 2004 to April 2012, during which one of the products that is manufactured is ethanol which is both de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... molasses and penalties were imposed. 3. Ld. Counsel after taking the Bench through the entire case records submits that the adjudicating authority has accepted the fact that appellant had discharged the Central Excise duty on un-denatured ethanol and the said duty is far in excess of the duty ordered to be recovered on molasses. It is his submission that the entire exercise is revenue neutral and the issue of discharge of central excise duty on un-denatured ethyl alcohol was within the knowledge of the department as can be seen from various correspondence. Appellant relied upon the decisions of Narayan Polyplast [2005(179)ELT 20 (SC)], Jamshedpur Beverages [2007(214)ELT 321 (SC)], Narmada Chematur Pharmaceuticals Limited [2007 (179) ELT 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3 and Section 5(A) of Central Excise Actg, 1944 on the un-denatured ethanol, be set aside. 4. Ld. DR, on the other hand, submits that classification of un-denatured ethanol is now settled issue, that the said product would fall under chapter heading 2207 as held by Tribunal in the case of Bajaj Hindusthan Sugar Ltd [2016(340) ELT 535 (Tri.-All.)] and Rajshree Sugars & Chemicals Limited [2016 (343) ELT 462 (Tri.-Chennai)]. It is his submission that once the classification in product is under chapter 22, benefit of notification 3/2005- CE needs to be availed and no duty liability should have been discharged and the demand of duty of molasses captively consumed was correct as also demand of interest and imposition of penalties. 5. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount which has been collected by Revenue needs to be refunded to the appellant as the amounts retained are not in accordance with the law. Since appellant's Counsel is not pressing the point of classification of ethanol on the ground that appellant has already discharged the duty on final products un-denatured alcohol which they should not have, we hold that due to revenue neutral situation, entire case has become one of academic exercise of no consequence. In our view, the protracted correspondence which was shown to us, also indicate that there was a stand off between the appellant and department as to discharge of duty liability on un-denatured alcohol/ethanol and it was categorically disclosed in the periodical returns filed with d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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