TMI Blog2013 (3) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... in light of above said Notification and circular. - Matter remanded back to adjudicating authority to decide the issue in the light of above said clarification given by C.B.E. & C. - F. Nos. 375/9 &72/DBK/ 11-RA-Cus - 44-45/2012-Cus. - Dated:- 27-1-2012 - Shri D.P. Singh, J. REPRESENTED BY : S/Shri L. Badri Narayanan, Rachit Jain, Advocates, Abbey Philip, DGM and I.B. Lal, President, for the Assessee. Shri Chhote Lal, Superintendent, for the Department. [Order]. These Revision Applications are filed by M/s. India Glycols Ltd., Uttrakhand against the Order-in-Appeal No. 29-Cus/MRT/2010, dated 30-11-2010 and Order-in-Appeal No. 11-Cus/MRT-II/2011, dated 30-6-2011 passed by Commissioner (Appeals), Customs Central Excise, Meerut-II with respect of Orders-in-Original passed by Deputy Commissioner, Customs ICD, Moradabad. 2. Brief facts of the case are that Applicant M/s. India Glycols Ltd. engaged in the manufacture and export of various products including Glycols, Guar Gums, rectified Spirit, ENA etc. Applicants exported the product namely Ethyl Alcohol (ENA) of MM 96.4% V/V strength and filed drawback claim @ Rs. 4.00 per Litre under the All Industry Rate for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V/v. Thus, at four digit level, both Rectified spirits and ENA are classifiable under same head. Further, the HSN clearly provides that neutral alcohols are classifiable under this heading. 4.2 The relevant entry of the Drawback schedule as it stood in the period of dispute is extracted below : Tariff Item Description of goods Unit Drawback when Cenvat facility has not been availed Drawback when Cenvat facility has been availed Drawback Rate Drawback cap per unit in Rs. Drawback Rate Drawback cap per unit in Rs. 22 Beverages, spirits and vinegar 2207 10 90 Rectified Spirit (Ethyl Alcohol) minimum strength of 94.68% V/V at 15.6 degree centigrade Litre Rs. 4.00 NIL The entry above starts with the words Rectified Spirit (Ethyl Alcohol) . The entry mentions rectified spirit , which is followed by the words ethyl alcohol in parenthesis. This implies that the entry deals with ethyl alcohol. Ethyl alcohol is a chemical compound and is the basis for a huge alcoholic beverage industry. One of the primary modes of manufacturing ethyl a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legislature has only clarified the scope of earlier entry. There has been no change in the Drawback classification. It remains classified under 2207 10 90. Further, the strength of the ethyl alcohol both in the erstwhile entry and the current entry remain more or less the same at 94.5% ethyl alcohol. More importantly, the Drawback entry makes it abundantly clear that the Drawback is for ethyl alcohol and of certain strength and by including all the descriptions, the entry makes it clear that Drawback is admissible for all sorts of ethyl alcohol beyond certain strength. 4.5 The finding that ENA and rectified spirit are two different products is simply perverse. Rectified spirit refers to that spirit that has undergone the process of rectification, i.e. ethyl alcohol that has undergone the process of rectification. Ethyl alcohol when obtained from ferment has a concentration of only about 8 - 10%. It contains other chemicals such as acetones, aldehydes, acids, impurities etc. In order to obtain ethyl alcohol of higher concentration and purity, it must be subjected to rectification. Rectification is defined in Hackh s Chemical Dictionary as the redistillation of a liquid for puri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical manner and not in commercial or trade parlance. Even assuming that as per trade parlance, rectified spirit is different from extra neutral alcohol, it must be noted that on a technical construction of the said entry, ethyl alcohol that has been rectified in order to obtain strength/concentration of 94.68% or more would fall under this entry. Extra neutral alcohol is nothing but ethyl alcohol that has been rectified to such an extent that the concentration or strength of ethyl alcohol is 96.4%. Ethyl alcohol of concentration 96.4% is obviously more than that of concentration 94.68%. 4.10 Under heading 2207 10, rectified spirit is itself not considered a single product but includes within its scope multiple heading namely 2207 10 11 and 2207 10 19. 2207 10 11 covers concentrates of alcoholic beverages and 2207 10 19 covers residual category of goods. Thus, contention of the department that rectified spirit is a single product and it must have only 94.68% purity ethyl alcohol is incorrect. Further, it can be stated more broadly that as per the classification provided under heading 220710, rectified spirit being classified under this heading can start from 80%. 4.11 If on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is used as an input in the manufacture of ENA. Rectified spirit of 94.68% V/V, which is accepted to fall under this entry, as an input for (or a constituent part of) ENA will be eligible for the duty Drawback. Therefore, the brand rate for ENA would be at least the Drawback available for rectified spirit of 94.68% V/V applying the principles laid down in the Circular. The exporter will get more Drawback if more particulars about duty relatable to other inputs added in the exported product can be supplied. However, the minimum brand rate that would be available on export of ENA would be all industry rate notified for export of rectified spirit (Ethyl Alcohol). Further, the rate is specific and not ad valorem and hence the Central Government should not have any concerns regarding excess Drawback claims. 5. Personal hearing scheduled in this case on 12-12-2011 was attended by Shri L. Badri Narayanan, and Shri Rachit Jain, Advocates, Shri Abbey Philip, DGM and Shri I.B. Lal, President on behalf of the applicant. The applicant mainly reiterated the grounds of revision applications. Shri Chhote Lal, Superintendent appeared in personal hearing on behalf of the Respondent department. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
