2017 (3) TMI 1152

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....d have also perused the record. As the controversy involved in these appeals is identical, the same is being decided by a common judgment and order treating the Central Excise Appeal no.248 of 2009 as the leading case. The Central Excise Appeal no.248 of 2009 has been filed by the department against the order of Custom,Excise & Service Tax Appellate Tribunal dated 26.8.2008 by which the tribunal has dismissed the appeal filed by the department. The appeal has been filed proposing the following seven questions of law: "1. Whether the appellate tribunal has committed error of law by not appreciating the fact that no MODVAT credit can be taken in respect of the levy molasses which is used as input for manufacture of country liqu....

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....re asked by the department to pay an amount equal to 8% of the price second category of final product i.e. Indian Made Foreign Liquor (IMFL) manufactured out of the Rectified Spirit (RS). The tribunal set aside the departmental order and held that 8% of sale price of Rs.i.e. first category of final product was chargeable under erstwhile Rule 57-CC/57-AD of CER, 1944. Thus the relied upon case has no relevance to the instant case? 6. Whether the Rule 57AD is applicable in respect of the levy molasses which is used by the manufacturer exclusively in the manufacture of country liquor. Country liquor is manufactured out of the quota of molasses allotted by the controlling authority of molasses i.e. Excise Commissioner (U.P). Such quant....

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....y liquor and whether provisions of Rule 57CC of the Rules were applicable to them or not. This very issue came up for debate and discussions/adjudication before the Tribunal in the appellant's own earlier case wherein the Modvat credit, in the similar circumstances, was sought to be denied by the Revenue on the levy molasses used by the appellants for manufacture of rectified spirit which was thereafter used for the manufacture of Indian made foreign liquor (IMFL) (Non-excisable). The tribunal vide final order dated 27.3.2000 held that the appellants were entitled to avail Modvat credit on the levy molasses and they were liable to pay the amount at the rate of 8% on the value of the rectified spirit being cleared for manufacture of IMFL....