2017 (7) TMI 554

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....the Respondent ORDER Per: Raju This appeal has been filed by. M/s. Pepsico India Holdings Pvt Ltd in respect of sugar syrup manufactured and used within the factory of production. The lower authority have confirmed the demand on sugar syrup manufactured and consumed within the factory. 2. Ld. Counsel for the appellant argued that said sugar syrup is not chargeable to duty in view of CBEC Circu....

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....ter for which exemption Notification No.67/95 is available. She further argued that since the de and has been made in respect of sugar syrup consumed captively in production of aerated water and fruit pulp based drink. For aerated water notification no.67/95 provides exemption on the captive consumption of the goods and in respect of fruit pulp based drinks notification no.10/96 provides full exem....

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....he manufacture of aerated water on which duty is payable therefore they are entitled to benefit of Notification No.67/1995-CE dated 16-3-1995. In the circumstances she further argued that no penalty and interest can be recoverable from them. 3. Ld. A.R. appearing on behalf of the Revenue relies on the impugned order. He also relied on the decision of this Tribunal in case of Sri. Sarvaraya Sugar ....

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.... which comes into existence in the course of manufacture of aerated water are not marketable as they have very short shelf life. Accordingly, it was held that sugar syrup are not liable to duty. The circular dated 7-1-1994 however reversed this situation by holding that sugar syrup is prepared by dissolving sugar in water at temperature of 80 C when treated with the activated carbon and decamol, h....