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TMI Blog2023 (8) TMI 1318X X X X Extracts X X X X X X X X Extracts X X X X ..... molasses emerges as a byproduct. Molasses is captively consumed in the manufacture of dutiable products like Ethyl Alcohol, Ethanol, denatured spirit and exempted products like rectified spirit etc. In the course of the manufacture of rectified spirit, carbon dioxide also emerges which is also liable to duty. The appellants used to sell molasses on payment of duty as and when there is demand of those. However, for the molasses captively used for further manufacture of Ethyl Alcohol, Ethanol, Rectified Spirit, ENA, Denatured spirit etc., the appellants were availing the benefit of Notification No.67/95-CE dated 13.06.1995 as amended, which grants exemption from payment of duty on intermediary products, which are captively consumed in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of confiscation of 2618 MT of Molasses valued at Rs. 1,17,81,000/- u/s 34 of the CEA, 1944 20,00,000/- Penalty u/r 25(1) of the Central Rules 2002 10,00,000/- NSL Sugars Ltd. Appeal Nos E/20449/2016 E/20450/2016 E/21826/2016 Period of Dispute April 2014 to July 2014 August 2014 to March 2015 April 2015 to Nov 2015 Date of Show Cause Notice 21.01.2015 04.08.2015 28.4.2016 Date of Order-in-Original 23.12.2015/ 04.01.2016 23.12.2015/ 04.01.2016 31.10.2016 Demand of Central Excise duty u/s 11A(1) of CEA, 1944 Rs.84,97,500/- Rs.2,26,76,250/- Rs.2,28,75,000/- Interest u/s 11AA of the CEA, 1944 As applicable As applicable As applicable Penalty u/r 25 of the CER, 2002 Rs.84,97,500/- Rs.2,26,76,250/- Rs.45,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... memorandum, we find that the appellants have taken another plea that the impugned goods are not excisable at all. They have also taken the plea that the benefit of Notification No. 67/95 cannot be denied as the department has not shown that the rectified spirit cleared by the appellants is a dutiable excisable goods and is either exempted or carries nil rate of duty. We find this line of argument attractive as prima facie undenatured ethyl alcohol is outside the scope of the central excise levy. For the purpose of the main provision of Notification No. 67/95, we find that molasses will be covered under column 2 of the table as input, and undenatured ethyl alcohol will be covered under final products under coloum 3 of the table as the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed statement showing the details of such reversals, which will clearly indicate that there is no ambiguity in the said reversals. The appellant have submitted ER1 Returns, filled electronically from time to time wherein these details have been duly incorporated. In this reference, the attention of the Hon'ble Tribunal is invited to the decision of the Hon'ble Tribunal in the case of Manakpur Chini Mills Ltd. Vs. CCE-2017 (6) GSTL 188 (T) and also referred the decision of the Tribunal in the case of Bannari Amman Sugars Ltd. Vs. Commr. of Cus., C.Ex & ST. Mysore reported in 2018 (362) ELT 705 (Tri.-Bang), wherein it was held as follows: "6. After hearing both sides and perusal of the records, we note that the crux of the dispute is regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol 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 contends 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 manufacture of denatured spirit. Before 1-3-2005, department accepted that rectified spirit is covered under chapter sub-heading No. 2204.90. As stated above, 2204.90 covers ethyl alcohol ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chini Mills Ltd. Vs. Commissioner of C.EX. & S.T., Lucknow reported as 2017 (6) G.S.T.L. 188 (Tri.-All.) and in the case of M/s Bannari Amman Sugar Ltd. Vs. Commr. of Cus., C.Ex. & S.T., Mysore reported as 2018 (362) E.L.T. 705 (Tri.-Bang.), which was affirmed by the Hon'ble Apex Court in the case of Commr. of C. Ex. & Service Tax Vs. Dharani Sugars & Chemicals Ltd reported in 2022 (379) E.L.T. 556 (S.C.). Further, in the case of appellant M/s Chamundeshwari Sugars Ltd. the issue was considered by this Tribunal and vide Final Order No.964 dated 21.08.2007, appeal was allowed. 8. The learned D.R. reiterated the findings in the impugned order and submitted that the molasses has been used in the manufacture of 'ethyl alcohol and/or 'rectifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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