TMI Blog2014 (10) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant to reverse proportionate credit as per the provisions of then Rule 57CC of the Central Excise Rules which provided for the procedure of payment of duty on inputs used in the manufacture of exempted as well as dutiable final products. On this basis, the appellant was reversing the credit on molasses every month and intimating the department by means of the debit notes. The total amount of duty of ₹ 83,95,165/- on quantity of 16790.330 MT's of molasses has admittedly been paid. Therefore, the demand of duty on molasses used in the manufacture of exempted ethyl alcohol is not sustainable - Decided in favour of assessee. - Appeal No.E/3502/04 - - - Dated:- 4-8-2014 - Ashok Jindal and P S Pruthi, JJ. For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the molasses which is purchased from outside as well as manufactured by them was kept in one tank, they reversed the CENVAT Credit on the entire quantity of molasses contained in ethyl alcohol cleared for captive consumption as well as for sale to outside parties. They had also submitted debit notes every month to the Range Supdt. showing the molasses consume in ethyl alcohol and the duty paid at the rate of ₹ 500/- per metric tonne on such molasses. They urged that they are eligible for benefit of Notification 67/95-C.E as amended by Notification 31/2001-CE dated 01.06.2001 which provides exemption to captively consumed goods even if the final products are exempt from duty provided the manufacturer discharge the obligation prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue. It is seen from the documents submitted in the appeal that Superintendent Range I had directed the appellant 1997 to reverse proportionate credit as per the provisions of then Rule 57CC of the Central Excise Rules which provided for the procedure of payment of duty on inputs used in the manufacture of exempted as well as dutiable final products. On this basis, the appellant was reversing the credit on molasses every month and intimating the department by means of the debit notes. The total amount of duty of ₹ 83,95,165/- on quantity of 16790.330 MT's of molasses has admittedly been paid. Therefore, the demand of duty on molasses used in the manufacture of exempted ethyl alcohol is not sustainable. The next part of the demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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