2005 (8) TMI 594

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....ainavati, CA, for the Respondent. [Order]. - Heard both sides. The appeal has been filed by the appellant Commissioner and a cross appeal has been filed by the Respondents. The Respondents use duty paid Molasses from which they produce Rectified Spirit, which in turn is used by them for manufacture of ENA (Extra Neutral Alcohol), which is not dutiable. As per Rule 6(3)(a) of Cenvat Credit Rules....

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.....4% processing loss. After hearing both sides and perusal of the case records, I find that according to the submissions by the Ld. CA, about 1 MT of Molases is used for production of 250 Ltrs. of Rectified Spirit out of which 235 Ltrs. of ENA is produced. For the purpose of reversal of Modvat credit, in my view, the processing loss taking place at the intermediate stage of manufacture of Rectified....

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.... the period April, 2002 to March, 2003 has to be considered as time barred. He says that since the practice in the industry was not to reverse credit taken on Molasses in respect of the processing loss, the Respondents can not be charged for suppression. I am of the view that this ground taken by the Respondents in their cross appeal can not be accepted in view of the fact that they had not disclo....