TaxTMI 
TaxTMI 
2006 (11) TMI 455
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.... Shri T.C. Nair, Consultant, for the Respondent. [Order]. - Being aggrieved with the order passed by the Commissioner (Appeals), the revenue has preferred the present appeal. 2. I have heard Shri P.K. Katiyar, ld. SDR appearing for the revenue and Shri T.C. Nair , ld. Consultant, appearing for the respondents. 3. The respondents has procured molasses from Sarangdhar Sugar ....
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....ger. 5. On appeal against the above order, the appellate authority set aside the impugned order by observing as under :- "I find that molasses is a by product of a Khandsari unit. Main final product of the Khandsari sugar unit is "Khandsari Sugar" which is exempted from payment of Central Excise duty and so no registration is required for Khandsari sugar. However, molasses is excisable ....
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....account by the supplier and the appellant has availed Cenvat credit against such invoices issued under Rule 11 of Central Excise Rules, 2002 under which Central Excise duty is paid by the supplier which is a valid document for availing Cenvat credit. I find that there is no dispute that the Central Excise duty on the molasses in question paid by the supplier and recovered from the procurer who ....
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....y are not liable for any penalty". 6. On going through the above reasoning of the appellate authority, I find that admittedly the duty stands paid on the molasses. As such, confirmation of demand of duty again in respect of the same goods against the appellant is neither justified nor warranted. Reliance by the Revenue in terms of provisions of Rule 4(2) of Central Excise Rules cannot be p....