9911796707
TMI Blog2016 (1) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... factory of the respondent for manufacture of denatured spirit, which is cleared on payment of duty. 2. The respondent is a manufacturer of sugar, molasses and absolute/Ethyl Alcohol and is registered under the provisions of Central Excise and service tax. The respondent have also installed their distillery plant in the same complex. The distillery unit is engaged in the manufacture of Absolute alcohol or rectified spirit which is not taxable under the provisions of Central Excise Tariff Act. Rectified spirit is taxable under State Excise law. After manufacture of Absolute Alcohol or rectified spirit, a part of it is denatured by adding denaturants like, crotonal dehyde, which makes it fit for industrial use and unfit for human consumption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue at no stage have contested that the ethyl absolute alcohol is not obtained as a result of continuous process, while this fact has been well established by the adjudicating authority in his order. It was further observed that Central Excise duty on the goods manufacture in India is levied by virtue, of entry number 84 of the 7th schedule to the Constitution which exempts duty on alcoholic liquor for human consumption. It was further observed that rectified spirit being alchoholic goods is manufactured first and thereafter, after adding denaturant denatured/ethyl alcohol is manufacture and sold on payment of duty. It was aiso observed that such Cenvat credit was never denied to the assessee in the past. It is further observed that molasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to Cenvat credit as the input or input services have been used in manufacture of an exempt product. It is further urged that Cenvat credit cannot be denied on exempted intermediate product but in the present case the product "rectified spirit" or "absolute alcohol" is intermediate product as well as final product, being marketable, as such and at the same time non-excisable. Accordingly the ld. Commissioner have erred in holding that Cenvat credit is allowable/available. 6. The ld. Counsel for the respondent stated that the issue is no longer res Integra and the same stands settled by the ruling in the case of Commissioner of Central Excise Vs. Jainsons Wool Coombers Ltd.: 2011 (268) ELT 360 (P & H), wherein the question before Honourabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n during the period April 94 to September 94 and whether Tribunal was correct in allowing modvat credit of duty paid on capital goods and spares, namely Cardiga of Combing machines producing products namely silver/Combed/cotton falling under chapter 52.02 of the schedule which heading remained specifically excluded from the purview of eligible final products under erstwhile Rule 57Q as it stood during the material time. The Honourable High Court held that the final product product namely cotton yarn was cleared on payment of duty. Thus carded/combed cotton came into existence at and intermediate stage. The Tribunal rightly held that the goods in question were not marketable and relying on the circular dated 25/9/02 held that Cenvat credit s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was not paid on the intermediate product would not disentitle the manufacturer from the benefit of notification number 217/86-CE. Accordingly, he prays for dismissing the appeal of Revenue. 7. Having considered the rival contentions I find that the issue is squarely covered on all four by the ruling of the Honourable High Court and Supreme Court as relied on by the ld. Counsel for the respondent. In this view of the matter I hold that the respondent assessee is entitled to Cenvat credit on services received in the manufacture of absolute alcohol or rectified spirit, which have been further used for manufacture of denatured spirit, cleared on payment of duty. Thus, the appeal of revenue is dismissed. The respondent assessee will be entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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