KISAN SAHKARI CHINI MILLS LIMITED Vs. CCE

JUDGEMENT

(1.) NONE appeared on behalf of the appellant. The learned Advocate on behalf of the appellant by application dated 12.10.2007 requested to allow the appeal on merit following the decisions of the Tribunal and the Hon'ble Supreme Court on this issue.

(2.) THE relevant facts of the case in brief are that the appellants are engaged in the manufacture of dutiable commodities Ordinary Denatured Spirit and exempted commodity Rectified Spirit classifiable under chapter sub -heading 2204.00 of the first schedule to the Central Excise Tariff Act, 1985. The appellant availed cenvat credit on molasses used in the manufacture of dutiable and exempted finished goods. The appellant reversed the credit on molasses used in the manufacture of exempted final product under Rule 6(3)(a) of Cenvat Credit Rules, 2002. But the appellant did not reverse the credit on inputs used in the manufacture of exempted final product, which was lost as mentioned in ER -1 return. Show cause notice was issued proposing demand of duty on this ground. The adjudicating authority confirmed the demand of duty of Rs. 87,486/ - and imposed penalty of Rs. 15,000/ - alongwith interest. The Commissioner (Appeals) upheld the adjudication order.

(3.) LEARNED Advocate in his written submission on behalf of the appellant stated that the issue relates to reversal of credit or input which has been destroyed during the process of manufacture. He also stated that the issue has already been decided in the following cases: