COMMISSIONER OF C. EX. Vs. KHASA DISTILLERY CO.

JUDGEMENT

(1.) THE Commissioner (Appeals) in the impugned order had held

(2.) THE facts of the case briefly stated are that the respondent is engaged in the manufacture of carbon dioxide Gas, Fusel Oil, Malt and ethyl alcohol (denatured). On the basis of Intelligence Central Excise Officers visited the factory premises of the appellant. Enquiries revealed that the respondent is engaged also in the manufacture/propagation of yeast for captive consumption. It was noticed that no accounts were being maintained for yeast consumed in the factory captively. Accordingly, a SCN was issued to the respondent herein asking them to explain as to why Central Excise Duty should not be charged on yeast captively consumed and why penalty should not be imposed. In reply to the SCN, the respondents herein stated that they were not manufacturing yeast but it was generated in the process of fermentation and got destroyed after fermentation. It was contended by the respondent herein that yeast emerging in the process of fermentation in their distillery was neither bought nor sold and since the item was not marketable, it was not goods. The Dy. Commissioner confirmed the demand for duty and also imposed personal penalty. Against this order, the respondents herein filed an appeal before the ld. Commissioner (Appeals) who held as indicted above.

(3.) SHRI J.S. Agarwal, ld. Counsel appearing for the respondent submits that similar issue came up before the Tribunal in the case of CCE, Chandigarh v. Ranger Breweries Ltd. and Ors. reported in 2000 (122) E.L.T. 447 (T) = 2000 (39) RLT 1065 and this Tribunal in Para 7 of its order held