2014 (10) TMI 718

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.... the order-in-original of Commissioner Nasik in which he confirmed Excise duty of Rs. 83,95,165/- and Rs. 60,08,860/- and imposed penalties of Rs. 23,86,309/- & Rs. 48,11,590/- and ordered payment of interest as applicable. 2. Brief facts of the case are that the appellant manufacture sugar, molasses, ethyl alcohol, denatured ethyl alcohol etc. During manufacturing of sugar, molasses is generated....

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....5/- of duty paid on molasses purchased from outside. As the ethyl alcohol manufactured from the molasses which is purchased from outside as well as manufactured by them was kept in one tank, they reversed the CENVAT Credit on the entire quantity of molasses contained in ethyl alcohol cleared for captive consumption as well as for sale to outside parties. They had also submitted debit notes every m....

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....nts for dutiable and exempted goods, he can pay an amount equivalent to the CENVAT Credit attributable to inputs used in the final products. On issue of limitation, the learned Counsel stated that they had been intimating reversal of credit on molasses on a monthly basis at the rate of Rs. 500/- per metric tonne through debit notes. 5. Revenue defended the findings of the Commissioner. 6. We hav....

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....dent Range I had directed the appellant 1997 to reverse proportionate credit as per the provisions of then Rule 57CC of the Central Excise Rules which provided for the procedure of payment of duty on inputs used in the manufacture of exempted as well as dutiable final products. On this basis, the appellant was reversing the credit on molasses every month and intimating the department by means of t....