TMI Blog2017 (4) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants are eligible for the exemption under N/N. 67/1995 dated 16.03.1995 - In order to avail the exemption under N/N. 67/95 the appellant has to comply with the procedure prescribed in terms of Rule 6 of CCR. In doing so, it is not practical for appellant to pay duty on molasses at the time of clearance - When the appellants are eligible for benefit of N/N. 67/95 they cannot be compelled to pay interest alleging delay in payment of duty on molasses cleared and used by them - appeal allowed - decided in favor of appellant. - E/30716/2016 - A/30437/2017 - Dated:- 2-3-2017 - Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. G. Prahalad, Advocate for the Appellant Sh. P.S. Reddy, Assistant Commissioner (AR) for the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period 10/2007 to 03/2012 being the interest on delayed payment of duty on molasses as above. After adjudication, the original authority confirmed the demand of interest for the normal period amounting to ₹ 3,009/- and set aside the balance demand for the extended period. The assessee as well as the department filed appeal before the Commissioner (Appeals) against the said order. The assessee filed appeal being aggrieved by the confirmation of demand of ₹ 3,009/-. The Department filed appeal being aggrieved by setting aside the balance demand on the ground of limitation. The appeal filed by Department was allowed by the Commissioner (Appeals). Hence this appeal by the assessee. 3. The appeal filed by assessee against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 6 of CENVAT Credit Rules, 2002. That therefore department cannot contend that appellant is liable to pay duty on molasses at the time of clearance itself. 5. It is submitted by him that, the issue whether appellant is eligible for taking benefit of Notification No. 67/95 has been settled by the judgments laid in Godavari Sugar Mills Ltd., Vs. CCE , Belgaum [2007 (212) ELT 234 (Tri-Bang.)] Commissioner Vs. Godavari Sugar Mills Ltd., [2015 (319) ELT A69 (Kar.)] Sakthi Sugars Ltd., Vs. CCE, Salem [2008 (230) ELT 676 (Tri-Chennai)] and Commissioner Vs. Sakthi Sugars Ltd., [2016 (332) ELT A194 (SC)]. That the appellant having already reversed the proportionate credit in terms of Notification No.67/95, the demand of interest is unsustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified spirit. The demand of interest is made on the ground that there is delay in paying the duty while reversing the proportionate credit by the appellants in terms of Rule 6 of CENVAT Credit Rules, 2004. The issue whether appellants are using molasses as common input for dutiable as well as exempted products is already settled by the Tribunal in the appellant's own case vide Final Order No. 1991-1992/2006 dated 28.11.2006 stated supra. In a show cause notice which was issued to the appellant alleging irregular credit availed on molasses for the reason that molasses is used only for manufacture of exempted product (rectified spirit), the Tribunal upheld the order passed by Commissioner (Appeals) and held that molasses is a common input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal for appellant to pay duty on molasses at the time of clearance. The discussions of the Commissioner (Appeals) in Order-in-Appeal dated 28.04.2015 while setting aside the demand of ₹ 3,009/- and ₹ 1,54,105/- is note worthy in this regard. 7. However the dispute is clearly not about the exemption, but about the interest corresponding to such reversal . The appellant claims that the duty on molasses was reversed to the extent it was consumed in the exempted spirit, and hence obligation under Rule 6 of CCR is met. This is consistent with the Godavari Sugar Mills ruling. However, the notices treat the same as duty paid on molasses to attach the interest liability. The question to be addressed now is whether the amount paid (o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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