https://www.taxtmi.com/caselaws?id=446272 CESTAT New Delhi held that a sugar factory and distillery unit operating under single Central Excise registration constituted one unit despite separate state licenses. The tribunal ruled that area-based exemption under N/N. 50/2003-CE applied to all products including denatured alcohol and CO2, making them fully duty-exempt. However, no CENVAT credit was allowable on capital goods for exempt products. Regarding input services, CENVAT credit of Rs. 32,82,816 was allowed for invoices issued before September 1, 2014, as notification 21/2014-CE restricting six-month availment applied prospectively. Demand of Rs. 4,57,436 for short reversal under Rule 6(3A) was upheld as the show cause notice issued on January 4, 2016 fell within one-year limitation period. Appeal was partly allowed with penalty reduction. en-us Wed, 29 Nov 2023 00:00:00 +0530 Thu, 30 Nov 2023 07:41:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446272 CESTAT New Delhi held that a sugar factory and distillery unit operating under single Central Excise registration constituted one unit despite separate state licenses. The tribunal ruled that area-based exemption under N/N. 50/2003-CE applied to all products including denatured alcohol and CO2, making them fully duty-exempt. However, no CENVAT credit was allowable on capital goods for exempt products. Regarding input services, CENVAT credit of Rs. 32,82,816 was allowed for invoices issued before September 1, 2014, as notification 21/2014-CE restricting six-month availment applied prospectively. Demand of Rs. 4,57,436 for short reversal under Rule 6(3A) was upheld as the show cause notice issued on January 4, 2016 fell within one-year limitation period. Appeal was partly allowed with penalty reduction. Case-Laws Central Excise Wed, 29 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446272