2017 (11) TMI 1462

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..../2007-CE dated 3.5.2007, the biscuits are exempted from duty. For manufacturing biscuits, the appellant has used sugar syrup. It is the contention of the department that sugar syrup is subject to excise duty. So, the demand was raised. Being aggrieved, the appellant has filed the present appeal. 3. With this background, we heard Shri R Krishnan and Shri S K Bansal, learned Counsels for the parties. 4. After hearing both sides and on perusal of material available on record, it appears that identical issue has came up before the Tribunal in the case of Rishi Bakers Pvt. Ltd. Vs. CCE, Kanpur [ Final Order No 50759- 50764/2015 dated 3.3.2015] wherein it was observed that : 7. The dispute in the present case is as to whether sugar syrup made....

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....oduct and in respect of the exempted final product, the obligation under Rule 6 of the Cenvat Credit Rules has been discharged. Shri Patil in this regard has cited the judgment of the Tribunal in the case of Sakthi Sugars Ltd. Vs. CCE, Salem reported in 2008 (230) E.L.T. 676 (Tri. - Chennai). We have gone through this judgment. In our view ratio of this judgment is not applicable to the facts of this case. 8. Next comes the question of classification. The Department has classified the product, in question, under sub-heading 17029090. Sub-heading 17029090 comes under the 6 digit sub-heading 170290 which covers "other sugars including invert sugar and sugar syrup blends containing in the dry stage 50% by weight of fructose". The goods, in q....

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....s been taken by the Apex Court in its judgment in the case of Bonanzo Engg. & Chemical P. Ltd. Vs. CCE reported in 2012 (277) E.L.T. 145 (S.C.). In view of this, we hold that the classification of the goods under sub-heading 17029090 is not sustainable, as absolutely no evidence has been produced by the Department to show that the fructose content of the goods, in question, in dry state was 50%. 9. Even if it is assumed that the goods, in question, are covered by sub-heading 17029090, for attracting Central Excise duty the goods must be proved to be marketable. The Tribunal had remanded this matter to Commissioner (Appeals) for examining the question of marketability of the goods, in question. In this regard it is settled law that the mar....

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....tation of + 66.5) is also called inversion, as the mixture of glucose and fructose formed by this process is levorotatory with sp. Rotation of -19.7  and for this reason the mixture of glucose and fructose formed by hydrolysis of cane sugar is called invert sugar. The invert sugar has longer shelf life. Whether a sugar syrup is ordinary cane sugar syrup or is invert sugar syrup has to be ascertained by chemical test which has not been done. It is, therefore, totally wrong to presume a given sugar syrup as invert sugar syrup without test. The judgments of the Apex court in the cases of Gujarat Nermada Valley Fert. Co. Ltd. Vs. CCE & CUS (supra), Nicholaas Piramal India Ltd. Vs. CCE, Mumbai (supra) and Medley Pharmaceuticals Ltd. Vs. CCE....