TaxTMI 
TaxTMI 
2013 (3) TMI 189
X X X X Extracts X X X X
X X X X Extracts X X X X
....4.00 per Litre under the All Industry Rate for Drawback schedules. The goods were declared as Ethyl Alcohol (ENA) of Minimum of 96.4% V/v strength and drawback @ Rs. 4.00 per litre under entry No. 2207 10 90 of the drawback schedule. In the entry No. 2207 10 90 of drawback schedule, the description of goods is shown as "Rectified Spirit (Ethyl Alcohol) having a minimum strength of 94.68% V/V at 15.6 degree centigrade", whereas the goods as declared on the Shipping Bill was Ethyl Alcohol (ENA) of Minimum 96.4 V/V Strength. Thus, it appears that the description shown in the said entry is at vaviance with the description of goods exported by the Applicant. Original authority observed that the goods (ENA) is a different commodity as mentioned at the entry No. 2207 10 90 of the Drawback schedule and as such, the ENA is not covered under the said entry. Accordingly, no drawback is admissible as claimed. Consequently, Show Cause Notices were issued to the Applicant asking them to show cause as to why their Drawback claim under entry No. 2207 10 90 of Drawback Schedule should not be disallowed and rejected. The adjudicating authority vide impugned orders held that all the claims filed by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... modes of manufacturing ethyl alcohol is through the process of fermentation of sugars such as molasses followed by repeated distillation (also called rectification). This ethyl alcohol that emerges from the process of rectification is referred to as rectified spirit. Thus, the reference to rectified spirit is to ethyl alcohol and not any other product. Similarly extra neutral alcohol also refers to ethyl alcohol only and not any other product. 4.3 The Commissioner (Appeals) has erred in restricting the scope of the entry to Rectified Spirit of strength 94.6% whereas the DBK entry provides for "Rectified spirit (ethyl alcohol) having minimum strength of 94.68% V/V at 15.6 degree centigrade" and thus negated the intention of the legislature. It has already been established that the first portion of the entry, i.e. "spirit" refers to ethyl alcohol. Such ethyl alcohol for the entry has to be subjected to the process of rectification (purification). The portion of the entry in brackets clarifies the spirit to be ethyl alcohol. Such ethyl alcohol is to be "Having a minimum strength of 94.68% V/V" means that such ethyl alcohol must have a concentration equal to or more than....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f a liquid for purification". Rectification is a continuous process and depending on how many times this process is carried out, one can obtain ethyl alcohol of varying purity level. Such ethyl alcohol is known as rectified spirit. Extra neutral alcohol also refers to ethyl alcohol and is obtained by the same process of rectification. The Chamber's dictionary defines 'neutral spirits' as non-flavoured alcohol of 190 degree proof or higher used for blending with other alcoholic liquors. Thus, reference to both rectified spirit and extra neutral alcohol are to the same product - ethyl alcohol. 4.6 In the manufacturing process that ENA is also obtained by the process of rectification. Originally the ferment wash has 8 - 8.5% ethyl alcohol content. After distillation in the analyzer column, the ethyl alcohol content increases to 40 - 45% in the wash. After this, the wash is fed into a rectifier column, where first the ethyl alcohol concentration is increased to 94.68%. Then, in order to further increase content of ethyl alcohol and remove other impurities, wash is diluted and again fed into another rectifier column. The product so obtained has ethyl alcohol content of 96.4% and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vided under heading 220710, rectified spirit being classified under this heading can start from 80%. 4.11 If one studies the Customs Tariff Act at the eight digit level and even going by department argument that rectified spirit commercially should have minimum purity of 94.68% upto 96.5% and ENA of 96.6% is not rectified spirit. Assuming the department is correct, without admitting, then the significance of the Drawback Schedule mentioning 2207 10 90 is of paramount importance. Since 2207 10 11 and 2207 10 19 cover respectively as per department concentrates of alcohol beverages between 94.68% to 96.5% and also other than concentrate of alcohol beverages of 94.68% to 96.5% respectively, heading 2207 10 90 should then cover items having concentration between 80 to 94.67% and greater than 96.5%. Thus Heading 2207 10 90 Drawback schedule should cover the ENA of concentration above 96.5%. These arguments thus stem from the fact that the Drawback Schedule at the four digit level of the Customs Tariff of 2207 are aligned, and thereafter the Drawback schedule for coverage puts a heading 2207 10 90 which as submitted would cover ENA since it meets all the parameters. For the depar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rounds of revision applications. Shri Chhote Lal, Superintendent appeared in personal hearing on behalf of the Respondent department. The applicants also stated that the C.B.E. & C. has clarified the issue in their favour vide Circular No. 42/2011-Cus., dated 22-9-2011. The respondent department vide their letter dated 12-12-2011 mainly reiterated contents of Orders-in-Appeal. 6. Government has carefully gone through the relevant case records and perused the impugned Order-in-Original and Order-in-Appeal. 7. Government notes that the applicant sought to export the goods having description as Ethyl Alcohol (ENA) minimum of 96.4% V/V strength under claim of Drawback @ Rs. 4.00 per litre under Drawback entry No. 2207 10 90 of the drawback schedule. Original authority rejected Drawback claim of the applicant on the ground that in the entry No. 2207 10 90 of drawback schedule, the description of goods was shown as "Rectified Spirit (Ethyl Alcohol) having a minimum strength of 94.68% V/V at 15.6 degree centigrade" and as such, the exported goods were at variance with the description given in Drawback Schedule. The applicant preferred appeals against impugned Orders-in-App....