2016 (8) TMI 386

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....ous application. Learned counsel for the appellant pleaded that the demand confirmed is to the tune of Rs. 9,51,11,791/- and the issue is recurring in nature and the appellant has received subsequent show cause notices and prayed for early hearing of the appeal. Since the issue was recurring in nature and substantial amount being involved the early hearing was allowed and with the consent of authorized representative of revenue. APPEAL No.E/52952/2015 (DB) was heard. 2. The brief facts of the case are that the appellant are having composite unit comprising of sugar mill and distillery division. They are engaged in the manufacture of Sugar and molasses, ethyl alcohol, rectified spirit and Denatured Absolute Alcohol. The show cause notice ....

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....ave given write up on process of manufacture where they have stated that the process of manufacture of denatured spirit from fermentation of molasses is continuous process. On fermentation, ethyl alcohol  is manufactured which is also called as rectified spirit. So as to   make rectified spirit unfit for human consumption denaturing is done by mixing rectified spirit with certain chemicals and they are not clearing rectified spirit at all and rectified spirit is nothing but ethyl alcohol. They, further, contented that there are no provisions in the CENVAT credit Rules that if a non excisable product emerges in between the manufacturer of excisable product in a continuous process, CENVAT credit is inadmissible. They have also ....

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....tative of revenue. He reiterated the findings of the order-in-Original dated 31.03.2015. 6.  We have taken the rival contentions into consideration and also have gone through the case records and paper books submitted during the hearing. We find that the appellant have a composite unit where sugar and molasses are manufactured. Further the molasses on fermentation in the distillery ethyl alcohol is obtain. Ethyl alcohol is denatured by mixing certain chemicals which make ethyl alcohol unfit for human consumption. Before 01.03.2005 chapter sub heading 2204.10 covered denatured ethyl alcohol of any strength and chapter sub heading no. 2204.90 covered ethyl alcohol except alcoholic liquor for human consumption and undenatured ethyl alc....