2009 (9) TMI 863

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....r the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. ORDER Heard both sides. The appellants are manufacturers of sugar who obtain molasses as a by product which in turn are used to produce Ethyl Alcohol, part of which is denatured and cleared on payment of appropriate excise duty. The department has raised a demand at the rate of Rs. 500/- per MT in respect of molasses which is....

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....respect of exempted and nil rated final products if 8% is paid under Rule 57AD corresponding to earlier Rule 57CC. 4. The appellants have paid 8% on the rectified spirit but since the period is prior to the amendment of the Notification No. 67/95, the lower appellate authority has not allowed the benefit of Notification No. 67/95 to the appellants. The appellants have cited the following decisi....

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.... is a dutiable excisable goods and is either exempted or carries nil rate of duty. We find this line of argument attractive as prima facie undenatured ethyl alcohol is outside the scope of the central excise levy. For the purpose of the main provision of Notification No. 67/95, we find that molasses will be covered under coloum 2 of the table as input, and undenatured ethyl alcohol will be covered....

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....nion list and hence it requires to be effectively verified that the undenatured ethyl alcohol (rectified spirit) cleared by the appellants without payment of duty is actually alcoholic liquor for home consumption. Subject to this aspect being verified, the appellants will be entitled to the exemption in respect of molasses under Notification No. 67/95 without being hit by the proviso thereon. For ....