Tribunal Waives Duty on Sugar Syrup for Biscuits, Remands Case for Further Review

The Tribunal granted waiver of pre-deposit of duty on Sugar Syrup for manufacturing exempted biscuits, amounting to Rs.43,22,016/-, interest, and penalty. The Tribunal considered the pending request for a notification under Section 11C of the Central Excise Act and a previous waiver on similar grounds. Recovery was stayed during the appeal process, and the case was remanded to the Commissioner (Appeals) for a decision on the appeal's merits after non-compliance with stay order conditions. The appeal was disposed of by way of remand for a thorough consideration of the substantive merits.

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Issues: Application for waiver of pre-deposit of duty on Sugar Syrup captively consumed for manufacturing exempted biscuits.

Analysis:
The applicant filed an application seeking waiver of pre-deposit of duty amounting to Rs.43,22,016/-, interest, and penalty related to the consumption of Sugar Syrup for manufacturing exempted biscuits. The contention put forth was that the Sugar Syrup is exempted under Notification No. 39/2011-CE dated 12.9.2011, and a request for a notification under Section 11C of the Central Excise Act is pending consideration by the Government. The applicant relied on a Tribunal stay order in another appeal, where pre-deposit was waived due to similar grounds. The Revenue argued that the Sugar Syrup is excisable goods due to the addition of citric acid, which enhances shelf life, justifying the demand made. The Tribunal observed that in a previous case, pre-deposit of duty confirmed on similar grounds was waived, considering the ongoing survey for the issuance of a notification under Section 11C of the Central Excise Act. Consequently, the pre-deposit of dues was waived, and recovery stayed during the appeal process.

The Commissioner (Appeals) had not decided the appeal on its merits and dismissed it for non-compliance with stay order conditions. Given the waiver of pre-deposit, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner (Appeals) for a decision on the appeal's merits after providing the appellant with a hearing opportunity. The appeal was disposed of by way of remand, emphasizing the need for a thorough consideration of the appeal on its substantive merits.

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