TaxTMI 
TaxTMI 
2012 (7) TMI 673
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....r hearing both sides, we find that the appellants are engaged in the manufacture of edible biscuit which became exempt from payment of duty with effect from 3.5.07. During the course of manufacture of biscuits, the sugar syrup and glucose flavour comes into existence at intermediate stage. The present demand relates to said sugar syrup and flavour which according to the Revenue are classifiable under heading 1702.90 and 3302 respectively. Accordingly, the demand stands confirmed against the appellants. 3. The appellants contention is that sugar syrup and flavour in question is not marketable and hence can not be held to be excisable. By drawing our attention to the process of manufacture, which includes mixing of sugar and water and heat....
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....tion is that the same is excisable. 5. Learned DR appearing for the Revenue has drawn our attention to the fact that during the relevant period sugar syrup was classifiable under Central Excise Tariff heading 1702 9090. He has drawn our attention to the Supreme Court decision in the case of Nicholas Piramal India Ltd. vs. CCE, Mumbai as reported in [2010 (260) ELT 338 (SC)] as also in the case of Supreme Court judgement in the case of Indian Cable Co. Ltd. vs. CCE, Calcutta as reported in [1994 (74) ELT 22 (SC)]. The ratio of the above decision is that the finding as regards the marketability of the goods is a pre-requisite or sine qua non for levy of duty. The marketability means saleable or suitable for sale. As such, he submits that a....
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....the chemical dictionary meaning of invert sugar which has the following properties:- A * More sweeter than sugar * Ready to use * Extremely stable * Highly purified * No crystallization * No fermentation B * Has lowest ash content * Is of constant colour and aroma * Is self preservative * Is non carcinogenic and low on calories * Is free from chemical additives * Is highly soluble than sugar. Accordingly, he has observed that this makes very clear that invert sugar is stable compound and also a marketable product. Also the CBEC vide its circular No. 226/60/C E/96-CX dated 3.7.96 and 780/13/2004-Cx. dated 12.3.2004 both issued from F.No. 14/2/2002/CX-I has clarified that if the sugar syrup is marketable....
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....t and the shelf life of the product. It is not the name of the product which is important, but the actual constituents of the product which would be decisive factor for deciding the above issue. We, further note that there is no test report of the sugar syrup being manufactured by the appellant, conducted by the Revenue. It is the sugar syrup, which is being manufactured by the appellant which has to be examined in relation to its marketability. If the sugar syrup being manufactured by the appellant does not have a shelf life and does not satisfy the criteria as prescribed in tariff heading 1702.90, the same would not be classifiable under the said heading. 9. The Tribunal in the case of M/s. Ambaji Foods (India) Pvt. Ltd. vs. CCE Kanpur....