2006 (11) TMI 463

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....hapatnam-II. 2. The first appeal has been filed by the Revenue and the second appeal by the assessee. In respect of the first appeal, both the lower authorities have held that the Respondent is entitled for availing modvat on molasses used in the manufacture of rectified spirit and denatured spirit as the Respondent paid 8% of the sale value of the exempted product viz ., rectified spirit. Revenue has not accepted the orders of the lower authorities. Against the order of the Asst. Commissioner, an appeal was filed with the Commissioner (A), who passed the impugned order upholding the order of the lower authority. The contention of the Revenue is that rectified spirit is not liable for Central Excise duty and therefore, no modvat credi....

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....equent to the date of clearances effect. Further, he has relied on the following decisions, which are favourable to the appellants. (i)      M/s. Kumbhi Kasari SSK Ltd. v. CCE, Pune-II - 2001 (128) E.L.T. 246 (Tri.-Mum.) (ii)    M/s. Shri Datta Shetkari SSK Ltd. v. CCE, Pune - 2004 (178) E.L.T. 484 (Tri.-Mum.) He also urged that the entire demand is time barred as the same is issued without invoking larger period. 6. We have gone through the records of the case carefully. The Respondents are manufacturers of sugar. They also have a distillery. They utilize the molasses produced for the manufacture of denatured spirit and rectified spirit. They availed Cenvat credit of duty paid on molasses. T....