2001 (12) TMI 145

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..... 4,00,000/- on the appellants. 2. The facts are not much in dispute. The appellants are holding Central Excise registration for manufacture of sugar, molasses, rectified spirit, denatured spirit and special denatured spirit (all excisable), Country liquor and IMFL ( both non-excisable). The molasses is used by them as input for manufacture of rectified spirit which in turn is used for the manufacture of Indian made foreign liquor (IMFL) and Country liquor ( C.L). During the relevant period in dispute (April 98 to Oct. 98 and Nov. 98 to Dec. 98), they have been receiving certain molasses on allotment from the State Government, from the quota of reserve molasses for ultimate manufacture of country liquor. However, they had been also procu....

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....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 in terms of Rule 57CC of the Rules as the said rule was applicable to their case. The Tribunal dismissed the appeals of the Revenue which were preferred against the Order-in-Appeal dated 27-3-2000. This fact has not even been disputed by the learn....