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TMI Blog2009 (3) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... here can be no double taxation on the same goods - The question whether the appellants as procurer of the molasses could be denied the benefit of Cenvat Credit is squarely covered by the Board’s Circular - The credit taken by the appellants of the duty ‘paid’ on molasses by its manufacturer is, therefore, in order. - E/992/2006 - A/133/2009-WZB/C-II/EB - Dated:- 2-3-2009 - S/Shri P.G. Chacko, Member (J) and A.K. Srivastava, Member (T) REPRESENTED BY : Ms. Padmavati M. Patil, Advocate, for the Appellant. Dr. T. Tiju, JDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we find that the appellants had taken Cenvat Credit of the duty paid on molasses by the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant is contrary to the view taken in the Board's Circular No. 877/115/2008-CX., dated 17-11-2008. We have also heard the Ld. JDR, who submits that Rule 4(2) of the Central Excise Rules, 2002 contained a mandate to procurer of molasses to pay duty thereon. It is argued that this requirement is mandatory and therefore the appellants are liable to pay duty on the molasses procured during the period of dispute. Contextually, it is also submitted that it was open to the manufacturer of molasses to claim refund of the duty paid by them. In her rejoinder, ld. Counsel has submitted that Rule 4 does not place any embargo on manufacturers of molasses in the matter of payment of duty thereon. 3. After considering the submissions, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same goods from the procurer on the strength of Rule 4(2) of the Central Excise Rules, 2002 would militate against one of the basic tenets of taxation law, which says that there can be no double taxation on the same goods. This is what was recognized and followed by this Tribunal in the case of Sagar Industries Distilleries Pvt. Ltd. (supra). The question whether the appellants as procurer of the molasses could be denied the benefit of Cenvat Credit is squarely covered by the Board's Circular which says that, for a manufacturer of final product to avail Cenvat Credit on inputs, what matters is whether duty was 'paid' on the inputs and not whether duty was 'payable' thereon. The credit taken by the appellants of the duty 'paid' on molasses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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