2005 (10) TMI 318

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....xcise duties. In the process of manufacture of these products, the appellants manufacture sugar syrup. The Department's contention is that this sugar syrup is excisable and duty on this intermediate product falling under Chapter Heading No. 1702.30 of CETA, 1985 is payable. A show cause notice was issued alleging that the Respondents evaded payment of Central Excise Duty during the period December 1992 to August 1997, of Rs. 89,78,618/-. Penalty under Section 11A was proposed and extended period of limitation was invoked. 3. The Respondents contended before the Commissioner that : (a) The process starting with preparation of solution till addition of alcohol is continuous process; (b) Sugar syrup remains in the state of over-saturat....

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.... are not marketable; that the Chemical Examiner who happened to test similar products opined that sugar syrup which comes into existence at the intermediate stage is dutiable; that similar goods are marketed; that the product has a shelf life; that for a product to be marketable it need not be bought and sold in the market; that it is enough if the goods are being capable of marketed. In regard to limitation it was argued that the Respondents did not file a classification declaration and that they removed the goods without payment of duty and therefore larger period of limitation is invocable. 6. Heard both sides. 7. It is seem from the Commissioner's order that he set aside the demand for December 1992 to May 1997 on the gr....