TMI Blog2018 (2) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is against the Order-in-Appeal No.84/2007 dated 2.3.2007. The appellant is engaged in the manufacture of sugar. During the course of manufacture of sugar, molasses emerges, which is further utilized by the process of fermentation and distillation to produce alcohol. Ethyl alcohol / 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 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lcohol. Ethyl alcohol, which is also known as rectified spirit, is excisable goods classifiable under CETH 2204.90. This finds specific mention in the tariff after its amendment in 2005, when it was made into 8 digit. 4.1 Learned counsel further submitted that in the case of Manakpur Chini 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 Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 6 of the Tribunal s decision is reproduced herein below: 6. We have taken the rival contentions into consideration and also have gone through the case records and paper books submitted during the hearing. 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 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 it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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