2011 (3) TMI 667

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....ohol falling under Chapter 17 & 22 of the Central Excise Tariff Act, 1985. They were availing MODVAT/CENVAT credit under Rule 57A/57AB of the erstwhile Central Excise Rules, 1944. The ethyl alcohol manufactured by the respondents was used in the manufacture of denatured ethyl alcohol and for manufacture of country liquor in their factory. The input molasses was being used in the manufacture of dutiable as well as the exempted final product. In terms of Rule 57CC, the appellants were paying an amount equal to 8% of the value of that quantity of ethyl alcohol which was used captively for manufacture of country liquor. The value taken for paying the amount equal to 8% was not the sale value of the ethyl alcohol captively consumed, but was comp....

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....e of another non-excisable product (country liquor). He also submitted that the decision of Savita Chemicals reported in 2000 (119) E.L.T. 394 on which the Commissioner (Appeals) has relied is not applicable to this case. 5. On the other hand, ld. advocate for the respondent reiterates the impugned order. 6. Heard and considered. 7. After considering the contention of both the sides, we find that the issue involved in this case is whether respondent has correctly paid amount equivalent to 8% the value of rectified spirit captively consumed by them in the manufacture of country liquor on the basis of sale price of same class of goods i.e. ethyl alcohol to independent buyers at factory gate. 8. The issue has be....