TMI Blog2009 (7) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... had already reversed an amount of Rs.1,45,29,161/- (Rupees one crore forty-five lakh twenty-nine thousand one hundred and sixty-one only) on clearance of rectified spirit, the Commissioner appropriated the balance credit of Rs.83,56,155/- (Rupees Eighty-three lakh fifty-six thousand one hundred and fifty-five only). The period of dispute is September 2001 to 14th May, 2004. held that- The Commissioner held that such procedure prescribed under Rule 6 of CCR did not apply to the appellants as it had manufactured only rectified spirit, for in his view, denatured spirit came into existence by the sole process of mixing rectified spirit with toxin. We are unable to agree with the Commissioner that the appellants had not manufactured denatured s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y) on clearance of rectified spirit, the Commissioner appropriated the balance credit of Rs.83,56,155/- (Rupees Eighty-three lakh fifty-six thousand one hundred and fifty-five only). The period of dispute is September 2001 to 14th May, 2004. 2. Facts of the case are that during the material period, VSL had manufactured and cleared rectified spirit, an item subject to nil rate of duty and had cleared a quantity of 40,000 Ltrs. of denatured spirit on payment of duty of Rs.43,969/- (Rupees Forty-three thousand nine hundred and sixty-nine only). The Commissioner found that the denatured spirit cleared had been obtained by mixing rectified spirit with toxin in the transporter's tanker brought by the buyer of denatured spirit. At the time of vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the inputs received and reversed the credit relatable to the inputs contained in the exempted rectified spirit when cleared, in accordance with the provisions of Rule 57CC and Rule 6 of the Cenvat Credit Rules, 2001 (CCR). These rules permitted availment of credit on duty paid on common inputs used in the manufacture of dutiable and exempted final products subject to the condition that credit relatable to exempted goods or 8% of the sale price of the exempted goods, as the case may be, was reversed at the time of clearance of exempted goods. The appellant did not stand to gain any undue benefit by taking Cenvat credit on common inputs, most of which went into production of exempted goods. The impugned order wrongly denied credit due to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave availed credit on common inputs. Moreover, the Revenue did not stand to lose in any way if VSL availed credit as provided in the CCR. In Rochi Ram Sons case (supra) the Tribunal had held that Cenvat credit was not disallowable if the appellant manufactured only exempted goods for a part of the year. It was not necessary for a manufacturer of dutiable and exempted goods to manufacture both such goods on a day-to-day basis. In PSL Ltd. v. CCE, Visakhapatnam [2007 (214) E.L.T. 238 (Tribunal)] (supra) also relied on by the appellants, the ratio of Rochi Ram Sons was followed and held that the appellants therein which manufactured completely exempted products for certain period and manufactured both dutiable products in addition to exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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