2009 (3) TMI 171

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....dvocate, for the Appellant. Dr. T. Tiju, JDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we find that the appellants had taken Cenvat Credit of the duty paid on molasses by the manufacturer thereof during the period of dispute (October and November 2003), during which period the liability to pay duty on molasses was on its....

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....here cannot be demand of duty twice on the same goods and, further, that Cenvat Credit of duty paid on input cannot be denied to the manufacturer of final product. The duty-paid molasses was used by the appellants in the manufacture of their final products, which were cleared on payment of duty. In this connection, reliance is placed on the Tribunal's decision in Commissioner of C. Ex., Nasik v. S....

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....urers of molasses in the matter of payment of duty thereon. 3. After considering the submissions, we find that the grounds of this appeal are well-supported by the view taken by ld. Member of this Tribunal in the case of Sagar Industries (supra) which case involved a similar dispute. The manufacturer of molasses had paid duty on the goods and the procurer also paid duty on the same goods under ....

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....it Rules, by stating that Rule 3 allowed credit of duty 'paid' by the input manufacturer and not duty 'payable' by such manufacturer. CBEC also relied on judgments of the Tribunal in support of this view. We observe that the Revenue cannot argue against the Circular. 4. In the instant case, duty was admittedly 'paid' on the molasses by its manufacturer and that duty was never refunded. Levy of ....