9911796707
TMI Blog2016 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... duty, whereas potable ethyl alcohol is not. For manufacture of both, the common input is molasses. The appellant generates molasses in their own factory in course of manufacture of sugar; they do not pay any duty on this molasses. They also purchase molasses from outside on payment of duty. These two types of molasses are stored in one tank and are used in the manufacture of alcohol, one part of which is ultimately cleared as rectified spirit and the other part, after denaturing, is cleared as denatured alcohol. The appellant takes modvat credit on whatever duty is paid on purchased molasses and pays CE duty on denatured alcohol and debits 8% of the value of the rectified spirit at the time of their clearance. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 was raised by show-cause notice dated 03.01.2001 and is hit by limitation inasmuch as that during the period in question the appellant had filed regular returns to the authorities, filed classification list and also the records were audited by the authorities. He would draw our attention to the copy of the classification list, RT-12 returns and pages of RG-23 wherein audit authorities have endorsed the auditing of records. 5. Learned D.R. would submit that the appellant is liable to discharge the Central Excise duty on the molasses manufactured locally (indigenously) as the said molasses are consumed in the manufacturing of rectified sprit which is exempted/non-excisable product. It is his submission that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information to the department for approval. Consequent to such classification list filed by them and clearances effected, the appellant filed copies of RT-12 returns for the period in question. Few said returns were produced before us which indicates that the appellant had in the return stated as to that molasses are manufactured by them claimed the benefit of exemption under Notification of 67/95. From the records available before us we find that the appellant had kept Revenue authorities informed about the manufacturing activity of molasses and consumption thereof for the manufacturing of rectified sprit and availment of benefit of Notification No. 67/95 as amended. 6.2 In our considered view, the show-caus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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