2007 (4) TMI 31

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....er-in-Original No. 09/2006 dated 28-9-2006 passed by the Commissioner of Central Excise, Belgaum. 2. The Adjudicating Authority, in the impugned order, has confirmed following demands Rs. 6,77,770/-:   Cenvat credit availed on Molasses in stock on 1-3-2005 Rs. 1,40,88,578/-: Cenvat credit on Molasses transferred from sugar section to distillery section during the period of d....

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....ied Spirit/Denatured Spirit. It is the contention of the Revenue that w.e.f. 1-3-2005, Rectified Spirit has become non-excisable and, therefore, no Cenvat credit could have been availed by the appellant. Apart from molasses, furnace oil is also used in the manufacture of Rectified Spirit as a fuel. Therefore, Revenue is also aggrieved that the Cenvat credit availed on furnace oil is also not admis....

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....tified Spirit. In other words, Molasses is used as a common input in the manufacture of exempted Rectified Spirit as well as dutiable Carbon Di-Oxide and Denatured Spirit. Hence, in terms of Rule 6 of Cenvat Credit Rules, if the credit on molasses used in or in relation to the manufacture of the said Rectified Spirit is reversed, there is no violation of any provisions of law and the credit taken ....

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....Oxide and Rectified Spirit/Denatured Spirit. Therefore, it cannot be said that the furnace oil is used only in the manufacture of Rectified Spirit. It is actually a common input used in the manufacture of exempted Rectified Spirit/dutiable Denatured Spirit and Carbon Di-Oxide. The Tribunal, in the case of Raymond Ltd. v. CCE, Mumbai 111 - 2000 (117) E.L.T. 104 (Tribunal), has held that Modvat cred....