Modvat credit not allowed for lost molasses before use in Ethyl Alcohol production. Duty recalculated on lost inputs.

The Tribunal held that Modvat credit on molasses lost during storage is not admissible if lost before utilization in manufacturing Ethyl Alcohol. The case is remanded for verification and calculation of duty on lost inputs.

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The case involves the reversal of Modvat credit on molasses lost during storage. The appellant did not claim remission of duty. The Tribunal held that credit is not admissible on quantity lost before utilization in the manufacture of Ethyl Alcohol. The matter is remanded for verification of quantity lost and calculation of duty on inputs lost during storage.

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