Marketability of captive sugar syrup affirmed where high sugar content and preservative gave the product shelf life.

Sugar syrup captively used in manufacturing exempt fruit juice was treated as marketable and therefore dutiable because it contained more than 65% sugar concentration and citric acid as a preservative. On those facts, the product was considered to have sufficient shelf life and did not remain non-marketable merely because it was consumed within the factory. The demand was upheld against the assessee.

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Issues: Whether sugar syrup manufactured and used captively in the manufacture of exempted fruit juice was marketable and therefore dutiable.

Analysis: The sugar syrup was found to contain more than 65% sugar concentration and citric acid as a preservative. On the facts, this composition was treated as sufficient to give the product shelf life. The decision followed the settled view that where the sugar concentration is 65% or more and preservative is added, the syrup acquires marketability and does not remain non-marketable merely because it is captively consumed.

Conclusion: The sugar syrup was held to be marketable and dutiable, and the demand was upheld against the assessee.

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