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M/s Bajaj Hindusthan Sugar Ltd. Versus Commissioner of Central Excise, Lucknow

2016 (8) TMI 386 - CESTAT ALLAHABAD

Cenvat credit - Recovery - wrong availment on rectified spirit - Whether ethyl alcohol and rectified spirit are two different commodities or one and the same commodity - Held that:- the ISI specifications had divided ethyl alcohol into several kinds of alcohol. Beverages and industrial alcohols were clearly and differently treated. Rectified spirit for industrial process was defined as spirit purified by distillation having a strength of not less than 95% by volume of ethyl alcohol. Therefore, i .....

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Advocate, for Appellant Shri Amit Mahajan, Advocate, for Respondent ORDER Miscellaneous Application No. E/Misc/51849/2015 is filed in APPEAL No.E/52952/2015 (DB) preferred by Bajaj Hindustan Sugar Ltd. The said miscellaneous application was filed with a prayer for out of turn early hearing. Heard the said miscellaneous application. Learned counsel for the appellant pleaded that the demand confirmed is to the tune of ₹ 9,51,11,791/- and the issue is recurring in nature and the appellant ha .....

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ctified spirit and Denatured Absolute Alcohol. The show cause notice is covering a period from August, 2012 to May, 2013. They undertake manufacture of Sugar and Molasses in Sugar Mill and Molasses are further utilized in distillery division for manufacturer of ethyl alcohol through the process of fermentation. The contention of revenue is that with effect from 01.03.2005 Central Excise Tariff item no. 22072000 covers ethyl alcohol and other spirit Denatured of any strength. Therefore, the produ .....

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facturer denatured spirit are not available to the appellants. Therefore, the appellants were served with the show cause notice No.28/Commr./Alld./2012 dated 14.08.2013 proposing recovery of allegedly wrongly availed CENVAT credit of ₹ 9,51,11,791/-with proposal for payment of interest and imposition of penalty. The said show cause notice was adjudicated through Order-in-Original No. 57/Commr./Lko/CX/2014-15 dated 13.03.2015 which is impugned order. The appellant submitted their defense be .....

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ectified spirit is nothing but ethyl alcohol. They, further, contented that there are no provisions in the CENVAT credit Rules that if a non excisable product emerges in between the manufacturer of excisable product in a continuous process, CENVAT credit is inadmissible. They have also contended that rectified spirit is finding place at tariff item no. 22072000 because ethyl alcohol and rectified spirit are not two different commodities. The original authority was not convinced with the argument .....

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pronouncements. 4. Heard the learned counsel for appellant. He has reiterated his argument before the original authority and in the grounds of appeal and submitted various case laws. He has also submitted copy of Apex Court's ruling in the case of State of Uttar Pradesh and others Vs. M/s Modi Distillery etc. [1996 U.P.T.C.-312] he stated that in para 9 of the said ruling the Hon'ble Supreme Court has given its observation about ethyl alcohol which clearly establishes that rectified spi .....

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g. We find that the appellant have a composite unit where sugar and molasses are manufactured. Further the molasses on fermentation in the distillery ethyl alcohol is obtain. Ethyl alcohol is denatured by mixing certain chemicals which make ethyl alcohol unfit for human consumption. Before 01.03.2005 chapter sub heading 2204.10 covered denatured ethyl alcohol of any strength and chapter sub heading no. 2204.90 covered ethyl alcohol except alcoholic liquor for human consumption and undenatured et .....

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