TaxTMI 
TaxTMI 
TaxTMI 
2025 (3) TMI 960
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....stian The issue in the present appeals is whether the benefit of exemption Notification No. 67/1995-CE dated 16.03.1995 as amended can be extended for captive consumption of molasses used in manufacture of Ethyl Alcohol/ Rectified spirit. 2. The brief facts are the Appellant is engaged in the manufacture of sugar and other excisable products. During the manufacture of the sugar, 'molasses' emerge as a byproduct and appellant is using 'molasses' in their own distillery, which is adjacent to appellant's sugar factory for manufacture of both dutiable goods as well as exempted goods without payment of duty, claiming the benefit of Notification No. 67/1995-CE dated 16.03.1995. Alleging that the appellant is not eligible for the....
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....r No. 964/07 dated 21.08.2007, as well as for the subsequent periods issued 31(thirty) Show cause notices (SCNs) for the period from August 2005 to November 2012 demanding Rs. 20, 22, 88.036/- which were adjudicated by common Order No. 08/2013/MYS/CEX/Commr, dated 30.03.2013, wherein the Adjudication Authority confirmed the demand along with interest. Aggrieved by said order Appeal No. E/27074 of 2013 was filed before this Tribunal. 4. As regards Appeal No. E/20392/2018, filed by the department it is with respect to the Show Cause Notice demanding Rs. 1, 46, 62, 568/-and Statement of Demand for Rs.1, 65, 75, 000/- dated 28.04.2016 and 20.10.2016, respectively on the same issue for the period from April 2015 to September 2015 and for the pe....
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....s submitted during the hearing. We find that the appellant have a composite unit where sugar and molasses are manufactured. Further the molasses on fermentation in the distillery, ethyl alcohol is obtained. Ethyl alcohol is denatured by mixing certain chemicals which make ethyl alcohol unfit for human consumption. Before 1-3-2005 chapter sub-heading 2204.10 covered denatured ethyl alcohol of any strength and chapter Sub-heading no. 2204.90 covered ethyl alcohol except alcoholic liquor for human consumption and undenatured ethyl alcohol. From 1-3-2005 Tariff Item no. 2207 20 00 covered ethyl alcohol and other spirits denatured of any strength. This led the Central Excise authorities to think that pre-denatured ethyl alcohol does not find pla....
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....alcohol and is finding place in Tariff item No. 2207 20 00. We, therefore, hold that the show cause notices are not sustainable. As a result, we set aside the impugned orders and all the appeals with consequential reliefs. No Costs." 7. The Appellant further relied upon the decision of the Hon'ble Tribunal in the case of Bannari Amman Sugars Ltd. Vs. Commr. of Cus., C.Ex & ST., Mysore 2018 (362) ELT 705 (Tri- Bang), wherein relying upon the decision of M/s. Manakpur Chini Mills, supra, it was held as follows; " 6. After hearing both sides and perusal of the records, we note that the crux of the dispute is regarding duty liability on molasses which is captively consumed, to the extent used in the manufacture of alcohol for human consu....
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.... the ground that Ethyl Alcohol and Rectified Spirit are one and the same and is finding place in first schedule to the Central Excise Tariff, 1965 as Central Excise Tariff Item 2207 20 00. 9. Learned Counsel further submits that for recovery of the refund granted as per the Final Order of this Tribunal, respondent should not have issued Show Cause Notice under Section 11A of the Central Excise Act, 1944 and the proper course is to follow the procedure laid down under Section 35E of the Central Excise Act, 1944. The order sanctioning refund was issued on 11.02.2008. If respondent was aggrieved by said order, it was open for the department to file an appeal against said order under Section 35E of the Central Excise Act, 1944. However, once t....