TMI Blog2018 (5) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... venue neutral situation, entire case has become one of academic exercise of no consequence. Duty on captively consumed molasses - Held that: - appellant could have entertained the bona fide belief that they need not discharge duty on captively consumed molasses as they were paying duty on un-denatured alcohol/ethanol. Extended period of limitation - penalty - Held that: - there was a stand off between the appellant and department as to discharge of duty liability on un-denatured alcohol/ethanol and it was categorically disclosed in the periodical returns filed with department tends credence to plea that extended period could not have been invoked - the entire issue was that of mis-interpretation, hence penalty imposed on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc, emerge. The period involved in all these appeals is from December 2004 to April 2012, during which one of the products that is manufactured is ethanol which is both denatured and un-denatured. Appellant classified the said product under Chapter 2938 opting to pay central excise duty with cess. Revenue s claim is that the product ethanol would fall under chapter heading No. 2207 and is exempted from payment of duty; appellant having discharged the central excise duty on ethanol under chapter 29, claimed benefit of exemption on the captively consumed molasses for manufacturing of ethanol, as also the CENVAT credit of duty paid on molasses procured from other manufacturers. By a show cause notice dated 31.12.2009 and 13.04.2010 demand has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied upon the decisions of Narayan Polyplast [2005(179)ELT 20 (SC)], Jamshedpur Beverages [2007(214)ELT 321 (SC)], Narmada Chematur Pharmaceuticals Limited [2007 (179) ELT 276 (SC)], Punjab Tractors Ltd [2005(181) EL 380 (SC)] for the proposition that since the matter was within the knowledge of the department as to they were not availing the benefit of exemption notification and discharging duty on un-denatured ethanol, extended period cannot be invoked; that appellant had in the knowledge and wisdom classified the said product under chapter 29 and mere wrong classification cannot be a situation for imposition of penalties and said classification was continued based upon the earlier order of adjudicating authority (O-I-A No: CE/12/99, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no duty liability should have been discharged and the demand of duty of molasses captively consumed was correct as also demand of interest and imposition of penalties. 5. On careful consideration of the submissions made by both sides, we find that instead of entering into the arena whether the classification of undenatured alcohol/ethanol during the relevant period in question in these appeals is 2207 or 2938, we find that the entire issue can be disposed of on the ground of revenue neutrality. We reproduce the chart indicating the duty demanded and confirmed by adjudicating authority on molasses and duty already paid by appellant on un-denatured alcohol/ethanol under chapter 29. Appeal No. Period i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the amount which has been collected by Revenue needs to be refunded to the appellant as the amounts retained are not in accordance with the law. Since appellant s Counsel is not pressing the point of classification of ethanol on the ground that appellant has already discharged the duty on final products un-denatured alcohol which they should not have, we hold that due to revenue neutral situation, entire case has become one of academic exercise of no consequence. In our view, the protracted correspondence which was shown to us, also indicate that there was a stand off between the appellant and department as to discharge of duty liability on un-denatured alcohol/ethanol and it was categorically disclosed in the periodical returns filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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