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TMI Blog2007 (4) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of Commissioner (Appeals) was confirmed by CESTAT. 3. Four show cause notices were issued to respondent-assessee on 12-7-2002 and 24-4-2002 stating that they had contravened the provisions of Rule 6(2) of Cenvat Credit Rules and therefore, they were liable to pay differential duty of Rs. 22,15,089/- . It is the contention of the department that respondents used mollasses in the manufacture of Ethyl Alcohol (Rectified Spirit). They are also availing Cenvat credit on the use of molasses as input. The Ethyl Alcohol was partly used in the manufacture of denatured Ethyl Alcohol and partly in the manufacture of Indian Made Foreign Liquor (IMFL for short). The denatured ethyl alcohol is excisable whereas IMFL is non-excisable. The respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal product) as well as rectified spirit (exempted rectified product) the assessee is paying an amount of 8% of the value of second category viz, rectified spirit in case of captive consumption within their factory". After considering the text of Rule 57-AD(1) and Rule 57AD(b) of the Central Excise Rules, 1944 which are practically pari materia with Rule 6 of Cenvat Credit Rules, 2001 [except one additional clause in sub-rule (3)(b) pertaining to black and white television sets], the learned Deputy Commissioner observed that the rectified spirit, cleared by the assessee to their own country liquor unit falls within the category of such goods. That decision of M/s Kesar Entreprises Ltd. reported in 2001 (42) RLJ 2004 (CEGAT) is applicable a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of the price of rectified spirit sold out from their unit, on the rectified spirit cleared for captive consumption too. The learned Commissioner has rejected the factual submission of the State to be incorrect that there was no sale of ethyl alcohol by the respondent from their unit which was necessary for the purpose of ascertaining 8% reversal of the market price. The assessee had submitted statement showing therein the quantities of ethyl alcohol cleared for captive consumption as well as for sale during the period July-September 2000 to February 2002. The statement was forwarded by the Commissioner (Appeals) to the Assistant Commissioner of Central Excise, Ahmednagar and the Assistant Commissioner confirmed and verified the sale pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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