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2017 (10) TMI 1027 - AT - Central ExciseN/N. 67/95-CE, dated 16/03/1995 - proprotionate credit in respect of Rectified Spirit (RS), Ethyl Alcohol (ENA), Power Alcohol, Absolute Alcohol, Bagasse, Press Mud, Electricity & Bio compost - Captive Consumption of Molasses - Manufacturing of Rectified Spirit and ENA - According to Revenue, Rectified Spirit and ENA are non-excisable goods with effect from 1.3.2005 and therefore, the appellants are not eligible to avail benefit of exemption N/N. 67/95-CE on Molasses captively used in the manufacture of Rectified Spirit and ENA - Held that: - Similar matter again came before the Tribunal and in the case of Rajshree Sugars & Chemicals Ltd. V/s CCE, Puducherry [2014 (11) TMI 919 - CESTAT CHENNAI], and therein it was held that benefit under N/N. 67/95-CE is available provided the assessee discharges the obligation of reversal of cenvat credit availed on duty paid on molasses used for manufacture of Rectified Spirit and denatured Spirit as required under Rule 6 (1) of CCR,2004. Thus, the department’s contention that Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) are not excisable is of no consequence in the light of the Tribunal’s decision in case of Rajshree Sugars & Chemicals Ltd. The assessee appellant would be entitled to the benefit of exemption under N/N. 67/95 CE (supra); if from the records of the appellant it is confirmed that they reversed or paid the Cenvat credit pertaining to the inputs in the products not chargeable to any duty or where products were exempted or were ‘non excisable’ - matter is remanded to the original adjudicating authority to verify the fact of reversal or payment of Cenvat credit pertaining to inputs in the products not chargeable to any duty or where they are exempted or ‘non-excisable’ - matter on remand. CENVAT credit - demand of ₹ 48,48,388/- mainly on the reason that this amount of Cenvat credit pertains to the inputs and input services used in the manufacture of exempted goods namely, electricity, press mud, bagasse - Held that: - adjudicating authority has not thoroughly examined the submissions of the appellant that subject cenvat credit had already been reversed in case of confirmation of recovery of demand of Cenvat Credit amounting to ₹ 48,48,388/-. Therefore, in case of this demand also, the matter needs denovo adjudication by the Original Adjudicating Authority - matter on remand. Appeal allowed by way of remand.
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