2008 (1) TMI 357

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.... for the Appellant. Shri C. Lama, JDR, for the Respondent.  [Order] - These are the two appeals. Since the issue is common in both the appeals they are being decided through a common order. 2. The appellants are engaged in the manufacture of sugar, molasses, special denatured spirit and rectified spirit and was availing Cenvat credit of duty paid on molasses which is common input use....

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....ble to inputs contained in the exempted products as well a Cenvat credit attributable to the input services also. Since the assessee paid an amount equal to Cenvat credit attributable to the input (molasses contained in the exempted product) and not service tax. Cenvat credit attributable to the input services, they were issued a show cause notice requiring them to pay an amount equivalent to serv....

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....acture of rectified spirit nor the quantum of credit of service tax taken on such input services and has roughly estimated the same to be 25%. This plea of the appellants was accepted by the Commissioner (Appeals) who has remanded the matter back to the adjudicating authority with a direction that he should specify the input services which are being used in the manufacture of final product and the....

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....actured out of duty paid molasses only. It is his prayer that the input services used in the manufacture of exempted product should be the one which are utilized by them after clearance of the molasses and not prior to them. 5. I have heard both sides and considered the submission. I find that the appellants is not denying that credit relating to that part of molasses and input services which a....