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TMI Blog2023 (9) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture of final products as along as the final product is not exempt from duty or are not chargeable to nil rate of duty. According to department, the Rectified Spirit manufactured using the captively consumed molasses was not excisable goods and does not come within the definition of 'finished product'. Therefore, the exemption availed under notification 67/95 in respect of molasses used for production of Rectified Spirit is incorrect. SCN was issued proposing to demand duty on the quantity of molasses captively used in production of rectified spirit from July 2012 to March 2013. After due process of law, the original authority confirmed the demand, interest and imposed penalties. Aggrieved, the appellant is before the Tribunal. 2. Learned counsel Sri M.N. Bharathi appeared for the appellant and submitted that the very same came up for consideration before the Tribunal and vide Final Order No.40612 dt. 26.07.2023, the Tribunal set aside the demand and allowed the appeal. He prayed that following the same decision, the appeal may be allowed. 3. Ld. A.R Sri R. Rajaraman appeared for the Department and supported the findings in the impugned order. 4. Heard both sides. The Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... six-digit tariff, but are now subject to different tariff rates in the 8-digit code. This is subject to any subsequent changes." 8.4 In the present case, there is no dispute that prior to 28-2-2005, Rectified Spirit and ENA manufactured by the appellant were covered under sub-heading No. 2204.90, NIL rate of duty. After amendment of Tariff (8 Digit Classification Code), Heading 22.04 would correspond to Heading No. 22.07. In the above Board Circular, it has been clarified that Notification No. 3/2005-C.E., dated 24-2-2005 was issued to preserve the existing duty rate. So, it is clearly evident that the Rectified Spirit existing NIL rate of duty under sub-heading No. 2204.90 has been covered under Serial No. 14 of the Table appended to Notification 3/2005-C.E. (supra). In view of the above Board Circular, we find merit in the submission of the learned Advocate that with effect from 28-2-2005, Rectified Spirit and ENA are exempted goods, covered under Notification No. 3/2005-C.E. The Hon'ble Allahabad High Court in the case of Gularia Chini Mills v. Union of India - 2014 (34) S.T.R. 175 (All.) while dealing with bagasse, which emerged as a residue of sugarcane used as fuel in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose of introduction of eight digit classification has stated that "the purpose of the Bill is very limited. On the custom side, we already have an eight-digit classification. It is, therefore, necessary that on the Excise side also we have the same eight digit classification. What we have found is that eight digit classification helps both trade and revenue department to identify a particular product and heading under which it falls. Immediately, the number of disputes comes down very sharply....". 31. A perusal of the 'Note' appended below the Notification dated 24-2-2005 as well as the statement made by the Hon'ble Finance Minister in Parliament, as referred to above, clearly establishes that the notification has taken care of the technical changes adopted in the numbering scheme of 6 digits Central Excise classification, which has been aligned with the Customs Tariff of 8 digits with effect from 28-2-2005. 32. The definition of 'excisable goods' given in Section 2(d) means the goods, which are specified in the First or Second Schedule and which are subjected to duty of excise, can only be treated as excisable goods. A proposition has also been accepted by the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the decision of the Hon'ble Supreme Court in the case of Synthetics and Chemicals [1990 (1) SCC 109] on 25-10-1989 holding that industrial alcohol was outside the legislative competence of State Legislature, the constitutional position relating to excisability for purposes of Central Excise became clear. Tamilnadu Prohibition and Excise Manual, Govt. of Tamil Nadu stated that levy of Excise Duty and Vend Fee on Industrial Alcohol has been withdrawn by the Government by order No. MS No. 167 Home, Prohibition and Excise (III) Department dated 3rd February 1990 effective 25-10-1989, the date of order of Supreme Court in W.P. No. 18, etc., of 1980 holding that the State Government could not invoke Entry 8 - List II, to levy Excise Duty and Vend Fee and the powers of State Government under "Entry 8-List II is limited to regulating and the prevention of conversion of alcoholic liquors for industrial use to one for human consumption and hence presently no levy is in operation. The Government, consequent on the withdrawal on Excise Duty and Vend Fee, have by order, MS. No. 662 Home, Prohibition and Excise III Department dated 4-9-1992 prescribed the collection of an Administrative Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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