TaxTMI 
TaxTMI 
2016 (10) TMI 739
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....nufacture of biscuits on behalf of M/s Parle Products Pvt. Ltd. on job work basis . During the course of manufacture of biscuits, sugar syrup is prepared and used captively by the appellants. With effect from 1.3.2007, biscuits were exempted by the Notification No.3/2006-CE dated 1.3.2006. Revenue entertained a view that since final products ( biscuits) are exempted , the intermediate product , sugar syrup arising in the appellant s unit is liable to central excise duty as the exemption under Notification No.67/1995-CE dated 16.3.95 will not be available to them. Accordingly, proceedings were initiated to recover the central excise duty. The original authority confirmed the confirmed and on appeal , the first appellate authority confirmed t....
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....lity of the goods, in question. In this regard it is settled law that the marketability of a product has to be established in the condition in which it emerges. In this regard the Apex Court in the case of Bata India Ltd. v. CCE, New Delhi (supra) has held that the test of marketability is whether product is marketable in condition in which it emerges. In this regard the marketability of the goods produced by a particular manufacturer cannot be presumed on the basis of the marketability of the similar goods in different condition being produced by another manufacturer, unless it shown that the two products are identical. In these cases, the Commissioner (Appeals) has held that the goods, in question, to be marketable only on the basis that ....
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....al India Ltd. v. CCE, Mumbai (supra) and Medley Pharmaceuticals Ltd. v. CCE & Cus, Daman (supra) cited by the learned DR are not applicable to the facts of this case. 10. In view of the above discussion, we hold that neither there is any evidence to prove that the goods, in question, are classifiable under 1702 90 90 nor there is any evidence to prove that the goods, in question, in form in which they come into existence in the appellant s factories, are marketable. We, therefore, hold that the impugned order is not sustainable. The same is set aside. The appeals are allowed with consequential relief." Similar view was taken in C.C.E.., Jaipur I vs. Kanti Beverages Pvt. Ltd. and Shri Dinesh Chadnra Sharma 2016 TIOL 2035 CESTAT DEL. and B....