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2015 (3) TMI 954 - AT - Central ExciseWaiver of pre deposit - Captive consumption - Denial of exemption under Notification No. 67/95-CE. - CENVAT Credit - Department s case against the appellant is that firstly while certain Cenvat credit availed input services have been used in or in relation to manufacture of their final products out of which while sugar and molasses are dutiable, and bagasse press mud/bio-compost and electricity are exempted final product - second objection of the Department is that while the appellant have cleared the in-house production of molasses for captive use to the distillery unit by availing duty exemption under Notification No. 67/95-CE, this exemption would not be admissible to the extent molasses has been used in the manufacture of non-excisable goods, namely extra neutral alcohol (ENA), which during the period of dispute was not figuring in the Central Excise Tariff and as such was non-excisabl - Held that:- duty exemption in respect of molasses manufactured in the appellant s factory and captively cleared to the distillery unit would not be admissible, to the extent the molasses was used in the manufactured of un-denatured ethyl alcohol. Duty demand of ₹ 6,35,38,125/- in respect of the clearances of molasses for captive use to the distillery unit appears to be on a strong footing. Since the un-denatured ethyl alcohol/extra neutral ethyl alcohol are non-excisable items, the molasses used for manufacture of these products would not be eligible for Cenvat credit and according to the Department Cenvat credit of ₹ 5,34,03,535/- has been availed in respect of molasses used for manufacture of non-excisable goods. Though the appellant plead that they had been reversing the Cenvat credit in respect of the quantity of molasses used for the manufacture of un-denatured ethyl alcohol/extra neutral ethyl alcohol by treating the same has exempted final product, this claim has to be examined in detail which can be done only at the stage of final hearing. - this is not the case for total waiver from the requirement of pre-deposit. - Partial stay granted.
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