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2016 (4) TMI 1189 - AT - Central ExciseCENVAT credit - duty paid on molasses - recovery of credit utilized for clearance of denatured rectified spirit - Held that: - denatured alcohol is acknowledged as an excisable goods and ‘output’ in terms of CCR, 2004. There cannot be discriminatory treatment in the treatment accorded to two manufacturers of the same product merely on the ground that one uses captively produced molasses and the other procures from external sources. The rectified spirit is an exempt goods and as the appellants do manufacture dutiable goods also, Cenvat Credit Rules does permit them to take credit of duty paid on molasses subject to compliance with Rule 6 of CCR, 2004. There is no finding that they have not reversed the Cenvat credit taken on inputs that have gone into the exempt goods. This is sufficient compliance of Rule 6. They are, consequently, not required to be subject to recovery of duty on goods cleared by utilization of Cenvat credit and not required to make good the credit taken on inputs. Appeal allowed - decided in favor of appellant.
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