Custom, Excise & Service Tax Tribunal
M/S Kesar Enterprises Ltd vs Commissioner Of Central Excise, ... on 18 January, 2018
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL REGIONAL BENCH : ALLAHABAD COURT No. I APPEAL No. E/2744/2009-EX[DB] (Arising out of Order-in-Original No. 16/COMM./MRT-II/2009 dated 05/05/2009 passed by Commissioner of Customs & Central Excise, Meerut-II) M/s Kesar Enterprises Ltd. Appellant Vs. Commissioner of Central Excise, Meerut-II Respondent
Appearance:
Shri Kapil Vaish (Advocate) for Appellant Shri Mohd. Altaf (Asstt. Commr.) AR for Respondent CORAM: Honble Mr. Ashok Jindal, Member (Judicial) Honble Mr. Anil G. Shakkarwar, Member (Technical) Date of Hearing : 18/01/2018 Date of Decision : 18/01/2018 FINAL ORDER NO. 70214/2018 Per: Anil G. Shakkarwar
The present appeal is arising out of Order-in-Original No. 16/COMM./MRT-II/2009 dated 05/05/2009 passed by Commissioner of Customs & Central Excise, Meerut-II.
2. Brief facts of the case are that the appellants were engaged in manufacturing Sugar, Molasses, Ethyl Alcohol, Rectified Spirit and Denatured Spirit. They were also manufacturing the Indian made Foreign Liquor. They were issued with a show cause notice dated 12/05/2008 with the proposal to refuse and demand Cenvat credit of Rs.2,98,00,303/- under Rule 14 of Cenvat Credit Rules, 2004. Further, there was an another proposal to deny and recover Cenvat credit of Rs.8,87,089/- under the same Rule. The appellant were receiving molasses manufactured in sugar unit through pipe line into the distillery section and they were taking Cenvat credit of duty paid on such molasses. Revenue entertained a view that said molasses were not received in distillery unit. Further, Revenue also entertained a view that the Cenvat credit of duty paid molasses which were used in the manufacture of Rectified Spirit was not admissible to them. The proceedings of said show cause notice was adjudicated through impugned Order-in-Original wherein Original Authority confirmed the demand and imposed equal penalty. Aggrieved by the said order, appellant is before this Tribunal.
3. Heard the Learned Chartered Accountant for the Appellant. He has submitted that the issue related to admissibility of Cenvat credit of duty paid on molasses used in the manufacture of Ethyl Alcohol/Rectified Spirit which subsequently used in the manufacture of Denatured Spirit was decided in their own case where it was held to be admissible through Final Order No. A/70094/2017-EX[DB]. Further, he has submitted that the receipt through pipe line was held by the Original Authority that the inputs were not received and such argument is not sustainable.
4. Heard the Learned A.R. who has supported the impugned Order-in-Original.
5. Having considered the rival contentions and on perusal of records and perusal of said Final Order No. A/70094/2017-EX[DB] dated 12/01/2017, we find that the issue related to admissibility of Cenvat credit of duty paid on molasses used in manufacture of Ethyl Alcohol/Rectified Spirit which was subsequently used in the manufacture of Denatured spirit was decided by this Tribunal in the case of M/s Bajaj Hindustan Ltd. and the same was held to be admissible to the appellants case in the said Final Order dated 12/01/2017. Following the said precedent Final Order dated 12/01/2017, we hold that Cenvat credit of duty paid on molasses used in the manufacture of Rectified Spirit which is subsequently used in the manufacture of Denatured Spirit was admissible to the appellant. We further hold that the view taken by Revenue that receipt through pipe line is no receipt is not sustainable. We, therefore, do not find any merit in the impugned Order-in-Original. We set aside the same and allow the appeal with consequential relief to the appellant, as per law.
(Dictated & Pronounced in Court) Sd/- Sd/-
(Ashok Jindal) Member (Judicial) (Anil G. Shakkarwar) Member (Technical) Lks 1 2 APPEAL No. E/2744/2009-EX[DB]