TMI Blog2009 (12) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... c Soda, Nalco 2588 etc. They sought for exemption on Molasses under Notification No. 67/95-C.E., dated 1-3-1995 for captive consumption in the manufacture of Spirit (Dutiable) at the distillery unit situated in their factory premises. Rectified Spirit (TSH 2204.90, NIL rate) emerging in the process, prior to Denatured spirit, has been one of final product. The unit reversed/paid the proportionate duty applicable on molasses that went into the manufacture of Rectified Spirit on clearances of Rectified Spirit of Rs. 46,19,293/- the period from 29-1-1999 to 16-10-1999. Two show cause notices were issued to the assessee proposing demand of 8% of the value of rectified spirit under Rules 57C and 57CC of the (then prevalent) Central Excise Rues, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already settled and reached its finality since, CESTAT vide its final Order No. 2082/2005, dated 2-12-2005 has dismissed the Departmental appeal and upheld the orders of Commissioner (Appeals) stated that the unit has already reversed the credit on inputs that went into the manufacture of exempted rectified spirit and the department has not disputed the same. Therefore, demand of 8% of the value of goods is not proper. From the CESTAT order it can be inferred that since the unit have paid the said duty in proportion to the credit availed on molasses and the demand at 8% was quashed, the refund claim based on the differential duty between the amount demanded and the duty paid does not arise. 3. The unit s appeal vide 146/2000 was pending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectified spirit on proportionate basis. Thus they opted to reverse the credit taken on Molasses instead of paying 8% duty under Rule 57CC, as an alternative available. 5.2 It is submitted that the Deputy Commissioner treated the inputs which are used in the Sugar plant for water treatment, purification of Sugar Cane Juice as common inputs used in manufacture of Sugar and Rectified spirit and demanded duty @ 8% being a sum of Rs. 20,89,256/- under Rule 57CC of Central Excise Rules ignoring the payment of Rs. 46,19,293/- already made under proportionate method of calculation. It is the submission that paying 8% of duty on rectified spirit is more economical to the appellants than reversing the credit on Molasses, but the department is ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t arise as they have already reversed the credit. He also submits that they had paid Rs. 46,19,293/- as duty on molasses which is not disputed by the Department. This is the amount calculated as duty on molasses that went into the manufacture of exempted goods as well. It is also submitted that the respondent has reversed the credit involved on the inputs that went into the manufacture of exempted rectified spirit. He also submits that they did not use any other raw materials for manufacture of such exempted goods. It is also submitted that although the Commissioner (Appeals) in the interim order has confined the order based on the provisions of Rule 57CC, the said provision is not relevant to the present issue involved as the respondent ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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