2019 (1) TMI 618

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....d spirit is leviable to central excise duty, whereas rectified spirit is non-excisable product, which is used captively for manufacture of excisable goods i.e. denatured spirit. During the course of audit of records in the factory premises of the appellant, the central excise officers observed that the appellant had availed Cenvat Credit amounting to Rs. 14,42,000/- on the capital goods, which were exclusively used in the manufacture of exempted grain base ENA/rectified spirit. It was further observed that the appellant had also availed input service credit amounting to Rs. 7,51,900/- on construction services, which were used exclusively in the manufacture of exempted composed fertilizer. Since the capital goods and input services were used....

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....f dutiable final product and thus, it cannot be said that the capital goods were exclusively used in the manufacture of such waste product. To support the stand that Cenvat Credit has been rightly availed by the appellant on the capital goods installed in the factory, the Learned Advocate has relied on the decision of Hon'ble Karnataka High Court in the case of Commissioner of Central Excise & Service Tax, Belgaum Vs. Vishwanath Sugars Ltd. 2015 (325) E.L.T. 588 (Kar.) and the decision of this Tribunal in the case of Mankapur Chini Mills Ltd. Vs. Commissioner of Central Excise & Service Tax, Lucknow 2017 (6) G.S.T.L. 188 (Tri.-All.) to support such stand. 4. On the other hand, the Learned DR appearing for the Revenue reiterated the findi....