Marketability of captively used sugar syrup upheld, sustaining excise classification and duty under the relevant tariff heading.

Captively consumed sugar syrup used in manufacturing beverages was treated as marketable because it had shelf life, and was therefore classifiable and dutiable under chapter sub-heading 1702.30 of the Central Excise Tariff Act, 1985. The Tribunal followed prior co-ordinate Bench decisions on the same product and issue, applying judicial discipline in the absence of any contrary larger Bench ruling. On that basis, the departmental classification and duty demand were sustained, and the impugned orders confirming liability were upheld.

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Issues: Whether raw sugar syrup captively consumed in manufacture of beverages was marketable and dutiable under chapter sub-heading 1702.30 of the Central Excise Tariff Act, 1985, and whether the departmental authorities correctly upheld the classification and duty demand on de novo consideration.

Analysis: The Tribunal noted that the matter had earlier been remanded for reconsideration of the concentration of sugar and the presence of citric acid, and that on remand the authorities had again held the product to be marketable, having shelf life, and therefore dutiable. It further noted that prior Tribunal decisions had already treated sugar syrup captively used in the manufacture of food products as marketable and classifiable under the same tariff heading. Applying judicial discipline, the Tribunal followed those co-ordinate Bench decisions and held that the product in question, being captively consumed in the manufacture of Maaza, fell within the same legal position.

Conclusion: The sugar syrup was held to be marketable and classifiable under chapter sub-heading 1702.30 of the Central Excise Tariff Act, 1985, and the demand and classification were sustained in favour of Revenue.

Final Conclusion: The appeal failed, and the impugned orders confirming duty liability and classification were upheld.

Ratio Decidendi: A captively consumed sugar syrup product having shelf life is marketable and dutiable under the relevant tariff heading, and co-ordinate Bench decisions on the same product and issue must be followed in the absence of a contrary larger bench ruling.

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