2019 (3) TMI 25 - AT - Central Excise

Appellate Tribunal rules 'sugar syrup' excisable in 'biscuits' production case.

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellant in a case concerning the excisability of 'sugar syrup' used in the production of ... Excisability - intermediate goods - ‘sugar syrup’ utilised by the appellant in the manufacture of ‘biscuits’ - Held that:- The issue decided in the case of VENUGOPAL FOODS PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE PUNE – II [2018 (12) TMI 1172 - CESTAT MUMBAI], where it was held that In the absence of any test report to contradict the ‘fructose’ content in the ‘sugar syrup’ produced by the appellant, it is not sufficient reasons found to consider the impugned goods to be excisable within the meaning of section 2(d) of Central Excise Act, 1944 - appeal allowed - decided in favor of appellant. Issues: Excisability of 'sugar syrup' used in the manufacture of 'biscuits'.Analysis:The Appellate Tribunal CESTAT Mumbai heard two appeals against the orders of the Commissioner of Central Excise (Appeals-II), Pune regarding the excisability of 'sugar syrup' utilized in making 'biscuits.' The appellant argued that a previous Tribunal decision favored them. The Tribunal referred to a case involving Venogopal Foods Pvt Ltd where it was established that 'sugar syrup' used in 'biscuits' production met the criteria of being excisable goods. The process of converting 'table sugar' into 'invert sugar' by dissolving it in water using heat, known as hydrolysis, was discussed. The addition of 'citric acid' was noted to expedite this process. The Tribunal acknowledged that 'sugar syrup' used in 'biscuits' production was different from that used in 'juices and concentrates.' The stability of 'sugar syrup' for 'biscuits' was recognized, and the absence of a test report contradicting the 'fructose' content in the appellant's 'sugar syrup' led the Tribunal to rule in favor of the appellant, setting aside the impugned orders and allowing the appeals.