2008 (8) TMI 661

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.... Shri M.M. Singh, DR, for the Respondent. [Order per : S.S. Kang, Vice-President]. -  Heard both sides. 2. The appellant filed this appeal against the impugned order where the demand was confirmed on wet starch. 3. The appellants are engaged in the manufacture of sago which is exempted from payment of Central Excise duty. The manufacturer of sago as explained by the appe....

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....t oil to remove the for 6 hrs and then fed into the rotating plate rollers to get themselves separated and then packed into bags for marketing. 4. The case of the Revenue is that wet starch which is an intermediate product is liable to excise duty as the final product sago is exempted from payment of duty. 5. The contention of the appellant is that final product is manufactured in ....

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..... The appellant also relied upon the decision of the Tribunal in the case of Maize Products v. CCE reported in 1987 (29) E.L.T. 321 where the Tribunal held that starch slurry being an intermediate product and being neither marketed nor marketable, not liable to levy of excise duty. 6. The contention of the Revenue is that during the manufacture of sago starch slurry come into existence and....

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....pted from payment of duty. The appellants are manufacturing sago in a continuous process from tapioca. The manufacturing process as explained by the appellant is not in dispute. In respect of marketability, we find that the Commissioner (Appeals) in the case of M/s. Kumar Sago Factory vide order dated 17-9-2005 dropped the demand in respect of starch slurry which was raised on the same grounds as ....