Appellant entitled to CENVAT credit for alcohol procurement regardless of supplier's duty payment decisions.

The Tribunal held that the appellant, who procured ethyl alcohol with duty paid by the supplier, could not be denied CENVAT credit based on the supplier's duty payment decisions. The Tribunal emphasized that the recipient of goods/inputs is entitled to the credit, regardless of the supplier's duty obligations. Relying on precedent decisions, the Tribunal found in favor of the appellant, setting aside the Revenue's objections and allowing all three appeals with consequential relief.

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Issues:
- Whether the appellant can be denied CENVAT credit for duty paid on ethyl alcohol procured from a supplier who paid excise duty on the product.

Analysis:
1. The appellant, engaged in manufacturing bulk drugs, procured ethyl alcohol from a supplier who paid duty on the product. The appellant availed CENVAT credit on the duty paid by the supplier.

2. The Revenue objected, arguing that ethyl alcohol was not an excisable product, and thus, the duty paid by the supplier should not have been levied. Consequently, the Revenue denied CENVAT credit to the appellants after initiating proceedings through show-cause notices.

3. The main issue was whether the appellant, who procured ethyl alcohol with duty paid by the supplier, could be denied the credit on the ground that the supplier should not have paid the duty. The Tribunal referred to various precedent decisions to support the appellant's entitlement to the credit, including the Cummins Diesel Sales & Service India Ltd case and the Asian Colour Coated Ispat Ltd case.

4. The Tribunal emphasized that the recipient of goods/inputs cannot be denied CENVAT credit based on the supplier's duty payment decisions. The Tribunal noted that since M/s Andhra Sugars had cleared the inputs by paying duty, the Revenue's objection was unfounded. The Tribunal found no merit in the Revenue's stance and set aside the impugned orders, allowing all three appeals with consequential relief to the appellants.

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