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TMI Blog2018 (9) TMI 1578X X X X Extracts X X X X X X X X Extracts X X X X ..... distillery division for manufacture of exempted products i.e. rectified spirit/ENA. v) Whether appellants were liable for reversal of credit under Rule 6 (3) of Cenvat Credit Rules, 2004 at the rate of 10% or on proportionate basis on clearance of rectified spirit/ENA during March, 2002 to March, 2007. 2. The brief facts of the case are as under:- i) Appellants are having a sugar factory where in sugar and molasses is manufactured. It also has a distillery division where in DS & SDS (dutiable) is manufactured. Besides above, RS & ENA are the intermediate exempted products and CL/IMFL are the non-excisable products. Appellants have been holding single Central Excise registration for sugar division and distillery division. ii) Appellants have been transferring molasses from sugar division to distillery division after payment of central excise duty at the prescribed rate and have been availing its credit in distillery division. Appellants have also been availing credit on molasses received from other sugar factories. Molasses so received is the main raw material in distillery division. iii) During the relevant period, appellants have also availed the credit on various inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as under:- "Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the Rules made thereunder, every person who is liable to pay duty under this Act or the Rules made thereunder, and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or the rules made thereunder from the buyer of such goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government." 4.4 From perusal of excise invoice, commercial invoice and customer ledger available in appeal paper book, we find that amount reversed under Rule 6 has never been charged or collected from the customer. In the excise invoice it was shown separately to comply the provisions of Rule 6 of Cenvat Credit Rules, 2004. Further, there is no dispute that amount of Rs. 56161401/- has already been reversed by the appellants in their credit account. This issue stands settled by the decision of Larger Bench of this Tribunal in the case of Unison Metals Ltd. Vs CCE reported in 2006 (204) ELT 323 (Tri.-LB). Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 6 of the Cenvat Credit Rules, 2004." 4.5 The aforesaid decision of the Larger Bench of the Tribunal and the board circular squarely applies in the appellants case and we therefore set aside the demand of Rs. 56161401/- confirmed under Section 11 D of Central Excise Act, 1944. 5.1 The next issue for consideration is whether appellants were eligible to take Cenvat credit on molasses received in the distillery division after payment of Central Excise duty either from its sugar division or from some other factory. 5.2 There is no dispute that molasses received in distillery division had been utilized for manufacture of final products which were dutiable as well as exempted. In terms of Rule 3 of Cenvat Credit Rules, 2004, appellants were eligible for taking credit of Central Excise duty paid on molasses so received in distillery division. This issue stands settled in appellants own case vide Final Order No.70094/2017 dated 12.01.2017. This Bench in para-5 held as under:- "5. Having considered the rival contentions, we find that the issue of admissibility of Cenvat Credit of duty paid on Molasses used in the manufacture of Ethyl Alcohol/Rectified Spirit which subsequently i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable under Central Excise Law. 7.3 Appellants other final products i.e. rectified spirit and ENA falling under Chapter Heading 22.04 (up to 27.02.2005) and Chapter Heading 22072000 (w.e.f. 28.02.2005) has remained exempted from payment of Central Excise duty under various notifications. 7.4 Rectified spirit and/or ENA is sold out side by the appellants; it is also consumed captivity for manufacture of dutiable final product like Denatured spirit and Special Denatured Spirit; it is also consumed captively for manufacture of non excisable products like country liquor and Indian made foreign liquor. 7.5 To the extent rectified spirit and/or ENA is capitively consumed for manufacture of dutiable final product i.e. Denatured spirit and Special Denatured Spirit, we hold that appellants were not required to reverse credit in terms of Rule 6 (3) of Cenvat Credit Rules, 2004. 7.6 To the extent rectified spirit and/or ENA is capitively consumed for manufacture of non excisable final products and to the extent rectified spirit is sold out side, we hold that appellants were liable to reverse credit in terms of Rule 6 (3) of Cenvat Credit Rules, 2004. 7.7 We note that Rule 6 (3) has been ..... 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