TMI Blog2006 (11) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... The first appeal has been filed by the Revenue and the second appeal by the assessee. In respect of the first appeal, both the lower authorities have held that the Respondent is entitled for availing modvat on molasses used in the manufacture of rectified spirit and denatured spirit as the Respondent paid 8% of the sale value of the exempted product viz ., rectified spirit. Revenue has not accepted the orders of the lower authorities. Against the order of the Asst. Commissioner, an appeal was filed with the Commissioner (A), who passed the impugned order upholding the order of the lower authority. The contention of the Revenue is that rectified spirit is not liable for Central Excise duty and therefore, no modvat credit can be taken by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect. Further, he has relied on the following decisions, which are favourable to the appellants. (i) M/s. Kumbhi Kasari SSK Ltd. v. CCE, Pune-II - 2001 (128) E.L.T. 246 (Tri.-Mum.) (ii) M/s. Shri Datta Shetkari SSK Ltd. v. CCE, Pune - 2004 (178) E.L.T. 484 (Tri.-Mum.) He also urged that the entire demand is time barred as the same is issued without invoking larger period. 6. We have gone through the records of the case carefully. The Respondents are manufacturers of sugar. They also have a distillery. They utilize the molasses produced for the manufacture of denatured spirit and rectified spirit. They availed Cenvat credit of duty paid on molasses. They also paid an amount equal to 8% of the value of exempted rectified spir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds the second appeal, the impugned order has been passed by the Commissioner, Visakhapatnam-II. The issue is the same as in the first appeal. The Commissioner has held that molasses is not used directly in the manufacture of denatured spirit. Molasses is actually used in the manufacture of rectified spirit, which in turn in used in the manufacture of denatured spirit by adding a denaturant. Since, rectified spirit is a final product on its own, he has held that Cenvat credit of duty paid on the molasses is not available. In the first appeal, we have already held that molasses is indeed a common input for rectified spirit and denatured spirit. In that view of the matter, the appellant is rightly entitled for the credit when they pay 8% of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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