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TMI Blog2018 (2) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... / rectified spirit, neutral spirit are various forms of alcohol fit for human consumption, which is outside the purview of levy of Central Excise duty. Along with such products for human consumption, dutiable products such as denatured spirit also emerge, on which Central Excise duty is payable. 2. The dispute is with reference to the levy of Central Excise duty on molasses which is further consumed within the factory. The appellant claimed the exemption benefit under Notification No.67/1995-CE dated 16.3.1995 which is applicable to goods which are captively consumed within the factory of production, in the manufacture of goods which are cleared on payment of duty. The Notification has also been made applicable for inputs consumed in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills Ltd. vs. CCE: 2017 (6) GSTL 188 (T). It was held that when sugar and molasses were made in the factory and further used in their distillery to manufacture ethyl alcohol in a continuous process, such rectified spirit fell under CETH 2207 20 00. The Tribunal further held that rectified spirit, not used for human consumption, was nothing but ethyl alcohol. He further submitted that the benefit of Notification No.67/95 was also extended by the Tribunal for molasses captively consumed in the case of Kothari Sugars & Chemicals Ltd.: 2010 (262) ELT 545 (T). 5. Learned DR justified the impugned order. He argued that molasses emerging in the manufacture of sugar is captively consumed for manufacture of ethyl alcohol. A part of such finished p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the molasses on fermentation in the distillery, ethyl alcohol is obtained. 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 ethyl alcohol. From 01.03.2005 tariff item no. 22072000 covered ethyl alcohol and other spirits denatured of any strength. This led the Central Excise authorities to think that pre-denatured ethyl alcohol does not find placed in Central Excise Tariff. We find that the show cause notice contends that rectified spirit is manufactured in between the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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