TaxTMI 
TaxTMI 
2023 (7) TMI 475
X X X X Extracts X X X X
X X X X Extracts X X X X
....0) as an intermediate product. The said sugar syrup is captively consumed in the manufacture of final products i.e Biscuits. For the manufacture of the intermediate product viz Sugar syrup, inputs such as Sugar, Water and Citric acid are used. The appellant was not paying duty on the Sugar Syrup as the said item was being captively consumed. It appeared to the department that the sugar being marketable and having shelf-life due to adding of citric acid is excisable and that appellant is liable to pay duty on such intermediate products. A show cause notice was issued for the period 01.04.2007 to 11.09.2007 proposing to demand the duty along with interest and for imposing penalties. After due process of law, the original authority confirmed t....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../2017 dated 20.11.2017 and other decisions were relied. 4. The learned AR Shri R. Rajaramam supported the findings in the impugned order 5. Heard both sides. 6. The issue to be decided is whether the Sugar Syrup prepared inside the factory is subject to levy of excise duty as an intermediate product. The appellant has argued that it is not a marketable product. The department has not furnished any evidence to show that sugar syrup manufactured by appellant is a marketable product. The issue has been settled by the Tribunal in the case of Rishi Baker Pvt. (supra) the relevant paragraph which is reproduced as follows: - "7. The dispute in the present case is as to whether sugar syrup made by the appellant for captive use in the manufactu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as been discharged. ShriPatil in this regard has cited the judgment of the Tribunal in the case of Sakthi Sugars Ltd. V. CCE, Salem reported in 2008 (230) ELT 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 1702 90 90. Sub-heading 1702 90 90 comes under the 6 digit sub-heading 1702 90 which covers "other sugars including invert sugar and sugar syrup blends containing in the dry stage 50% by weight of fructose". The goods, in question, are sought to be classified under 1702 90 90 as "sugar syrup blends containing in dry stage, 50% by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orted in 2012 (277) E.L.T. 145 (S.C.). In view of this, we hold that the classification of the goods under sub-heading 1702 90 90 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 1702 90 90, 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 marketability of a product has to be established in the condition in which it emerges. In this regard t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y 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 Narmada Valley Fert.Co. Ltd. v. CCE &Cus.(supra), Nicholaas Piramal India Ltd. v. CCE & Cus, Daman (supra) cited by the learned DR are not applicable to the facts of this case." (emphasis supplied) 7. The Tribunal in the case of M/s. Modern....