2016 (3) TMI 1161

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.... in manufacturing of Rectified Spirit, Extra Neutral Alocohol, Fermentation & Distillation, Fusel Oil and CO2 gas. As rectified spirit is exempted goods on which no duty is liable to pay by the respondent. The revenue of the view that the capital goods used of processing of Rectified Spirit are not entitled for Cenvat credit. In this set of facts, the proceedings were initiated against the respondent and Cenvat credit was sought to the denied on the capital goods. Consequently, the duty was demanded along with interest and equivalent amount of penalty was also imposed. The said order was challenged of the respondent before the ld. Commissioner (A) who after examining the process of manufacturing allowed that the Cenvat credit on the capital....

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....anufacture of denatured spirit (DNS) and Fusel Oil capital goods are used as capital goods. 8. So far as the point raised by the appellants regarding use of capital goods in the manufacture of Denatured Spirit (DNS) is concerned the process of manufacture of both Rectified Spirit (RS) and Denatured Spirit (DNS) is required to be seen. As per the process of the manufacture reflected in para 2 and page 63 of the paper book enclosed with the appeal, the following flow chart of manufacture of Rectified Spirit (RS) and Denatured Spirit (DNS) is drawn :- 9. From the process of manufacture of Rectified Spirit (RS) and Denatured Spirit (DNS) detailed above, it is observed that capital goods are used upto the rectifier column where R....