COMMISSIONER OF C. EX., VISAKHAPATNAM Vs. DECCAN SUGARS

JUDGEMENT

(1.) THIS appeal arises from the Order -in -Appeal No. 76/2004 (V -II) C.E., dated 8 -11 -2004. The Deputy Commissioner confirmed the demand and computed the duty demand at 8% on the value of rectified spirit cleared at nil rate of duty. The Commissioner (Appeal) has examined the issue and noticed that the assessee had reversed proportionate credit on Molasses treating it as the input for manufacture of Rectified spirit. Therefore, she noted that the demands were not sustainable. We have heard both the sides in the matter.

(2.) THE learned DR reiterated the grounds of the appeal.

(3.) THE learned Counsel filed written submissions and submitted that the question of confirming the demand does not arise as they have already reversed the credit. He also submits that they had paid Rs. 46,19,293/ - as duty on molasses which is not disputed by the Department. This is the amount calculated as duty on molasses that went into the manufacture of exempted goods as well. It is also submitted that the respondent has reversed the credit involved on the inputs that went into the manufacture of exempted rectified spirit. He also submits that they did not use any other raw materials for manufacture of such exempted goods. It is also submitted that although the Commissioner (Appeals) in the interim order has confined the order based on the provisions of Rule 57CC, the said provision is not relevant to the present issue involved as the respondent had reversed the entire credit taken on molasses used in the manufacture of exempted rectified spirit. Then the question of demanding duty at 8% does not arise.