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 'biscuits.' Citing a previous decision involving a similar matter, the Tribunal found that the 'sugar syrup' in question met the criteria of being excisable goods. The Tribunal highlighted the process of converting 'table sugar' into 'invert sugar' through hydrolysis and noted the specific characteristics of the 'sugar syrup' used in 'biscuits' production. Due to the lack of evidence contradicting the composition of the appellant's 'sugar syrup,' the Tribunal set aside the previous orders and allowed the appeals.

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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.

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