TaxTMI 
TaxTMI 
2007 (6) TMI 471
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....ar, molasses and rectified spirit (Ethyl Alcohol). The assessee clears rectified spirit as such and as denatured spirit. Whereas the rectified spirit is exempted from payment of duty, denatured spirit is subject to excise duty. Molasses which is a by-product emerging in the manufacture of sugar is captively consumed to produce rectified spirit. The assessee availed exemption under Notification No. 67/95 dated 16-3-95 on molasses used in the manufacture of rectified spirit during the period 1-3-2005 to 31-7-2005. Notification No. 67/95-CE is applicable to a commodity subject to the condition that the final products manufactured with the said goods are not exempt from excise duty or are not chargeable to "nil" rate of duty. The exemption is a....
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....oducts if such final products fell under Heading No. 22.04 of the I Schedule to the CETA 1985. In the instant case the final products were rectified spirit (Ethyl Alcohol) of Heading No. 22.04 of the CET. The ld. Counsel submitted that the appellants had reversed input credit availed during the material period to the tune of Rs. 6,71,555/- and produced certificate to that effect obtained from the jurisdictional range Superintendent. He claimed that in view of the reversal of input credit, the assessee was eligible for the exemption sought to be recovered and the impugned order was hence liable to be set aside. 3. Ld. SDR justified the impugned order and reiterated the reasoning followed by the Commissioner. 4. We have carefully ....
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.... was invited to amendment to Notification No. 67/95-C.E. by Notification No. 31/2001-C.E. dated 1-1-2001. In terms of the said amendment, the appellants are entitled for the benefit of the exemption Notification in a situation where there is manufacture of both dutiable and exempted final product, provided the manufacturer discharges the obligation prescribed in Rule 57 AD of the Central Excise Rules, 1944 which is pari materia with Rule 6 of the Cenvat Credit Rules, 2002. This is the point urged by the appellant. What is the obligation under Rule 6 of the Cenvat Credit Rules, 2002 ? The obligation under Rule 6 of Cenvat Credit Rules is that when a manufacturer uses input both for exempted and dutiable final products, he should maintain sep....