9911796707
TMI Blog2001 (12) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... have been preferred by the appellants against the common Order-in-Appeal dated 30-4-2001 passed by the Commissioner (Appeals) vide which he had upheld both the Orders-in-Original dated 26-3-99 and 24-11-99 of the A.C. who disallowed the Modvat credit of Rs. 3,98,725/- on the levy molasses and imposed penalty of Rs. 4,00,000/- on the appellants. 2. The facts are not much in dispute. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquor. 3. The appellants were served with a show cause notice on the ground that they had wrongly taken Modvat credit on molasses exclusively allotted for the manufacture of the Country liquor (non-excisable commodity) and were also not paying back the amount at the rate of 8% as per the provisions of Rule 57CC of the Rules on the value of the rectified spirit being cleared for manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. This very issue came up for debate and discussions/adjudication before the Tribunal in the appellant's own earlier case wherein the Modvat credit, in the similar circumstances, was sought to be denied by the Revenue on the levy molasses used by the appellants for manufacture of rectified spirit which was thereafter used for the manufacture of Indian made foreign liquor (IMFL) (Non-excisabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) confirming the Original order of the A.C. denying the Modvat credit on levy molasses and imposing penalty in both the appeals, cannot be legally sustained and deserves to be set aside. The matter deserves to be sent back to the adjudicating authority for determining the amount at the rate of 8% of the value of the rectified spirit cleared by the appellants during the disputed period for the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the counsel if deems fit. However, in case, the adjudicating authority still intents to impose penalty on the appellants, in that event, the same shall be imposed in the same proportion in which the Tribunal had earlier imposed the penalty vide opder dated 27-3-2000, referred to above, while dismissing the appeal of the Revenue. 7. Consequently, the impugned orders in both these appeals are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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