TMI Blog1967 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is normally used for mixing with petrol so that it could be used as motor spirit. The petitioner-company also denatures the absolute alcohol with some other denaturants, like hydrochloric acid, methyl alcohol, ethyl acetate, caustic soda, ether crotonal dehyde. The petitioner's case is that the absolute alcohol denatured with these denaturants is not suitable for being used as fuel for internal combustion engines and as such it is not liable to excise duty under the Central Excises and Salt Act, 1944. But on 17th January, 1964, the Inspector of Central Excise sent a notice to the petitioner demanding payment of Rs. 68,195.26P, as duty on absolute alcohol denatured with special denaturants under entry 6 (ii) of the tariff mentioned in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erwise treated), which, either by itself or in admixture with any other substance, is suitable for being used as aforesaid." 3. For the petitioner, it was urged that the absolute alcohol denatured with special denaturants was not power alcohol as defined by the Indian Power Alcohol Act, 1948, and consequently it would not be power alcohol within the meaning of entry 6 (ii). The Indian Power Alcohol Act deifnes power alcohol to mean ethyl alcohol containing not less than 99.4 per cent. by volume of ethanol measured at sixty degrees Fahrenheit corresponding to 74.4 over proof strength. The petitioner does produce ethyl alcohol of that grade strength. Reliance was placed on Rule 12 of the Rules framed under that Act, which required every dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethanol measured at 600F. corresponding to 74.4 overproof strength, and the acidity per 100 c.c. should not be more than 0.006 gramme calculated as acetic acid. Sub-rule (2) of Rule 11 further provides that when 200 c.c. of petrol (free from moisture) is shaken up with 10 c.c. of power alcohol there should be neither opalescene nor separation of liquid minute glou bulb at the bottom. These are the further conditions which power alcohol must satisfy before it can be fit for sale or admixture with petrol, etc. These also are not conditions prescribed for determining whether the manufactured product is power alcohol or not. The petitioner manufactures alcohol containing 99.5 per cent of ethanol. That is power alcohol within the meaning of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matters alone can swear it. The affidavit sworn, as it is, on legal advice, is valueless. Mr. H.N. Seth, appearing for the respondents, prays for time to file another affidavit by experts on this question. I, however, do not consider it necessary to adjourn the case for filing fresh affidavits because of the interpretation that, in my opinion, entry 6 bears. 6. It was not asserted either, in the appeal or even in the present petition that ethyl alcohol of 99.5 per cent. grade was by itself not suitable for use as fuel in internal combustion engines. It is further clear that the petitioner does a manufacture, from raw materials, ethyl alcohol of that grade. That commodity becomes liable to duty under entry 6, as soon as it is manufactured. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same as the `refined oil' as known to the market, excise duty may be leviable under item 23 (present item 12)." Similarly, here, from raw materials, the petitioner produces ethyl alcohol of the grade mentioned above, which it uses to manufacture the ultimate product which is popularly known as industrial alcohol by denaturing the ethyl alcohol. That would make no difference manufacture of ethyl alcohol of that grade would entail the liability to duty. 8. It was also urged by the learned counsel that the appellate authority did not apply its mind to the question whether the denatured alcohol was suitable for the use mentioned in entry 6. The point does not appear to have been raised specifically in the appeal. The appellate order indica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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