TaxTMI 
TaxTMI 
2026 (3) TMI 1368
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....id products manufactured by the appellant are falling under Tariff Item No. 2106 9099 of the First Schedule to the Central Excise Tariff Act, 1985. However, such products are exempted from payment of Central Excise duty under the erstwhile Notification No. 3/2006-C.E. dated 01.03.2006 and the subsequent Notification No. 12/2012-C.E. dated 17.03.2012. The products manufactured by the appellant are being sold under the brand name of "Haldiram's". The officers in the Preventive Wing of the Department had visited the factory of the appellant on 03.01.2014 and from the manufacturing process undertaken by them, it was observed that apart from manufacturing 'sweetmeats', the appellant is also engaged in the manufacture and clearance of excis....
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....rup is not a manufactured product by the appellant and is not capable of being bought and sold independent of sweetmeats, the said sugar syrup cannot be subjected to levy of Central Excise duty. Learned Advocate also submitted that in the trade parlance, the product marketed by the appellant is known as "Rasgulla" and the sugar syrup added thereto as a preservative, has lost its identity for consideration as a distinct and separate product. Hence, she submitted that since the final products manufactured by the appellant are exempted from payment of Central Excise duty, separate duty liability cannot be fastened on the sugar syrup, when it was not sold as such, by the appellant in the open market. To support such stand, learned Advocate has ....
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....ct of 1944, to mean 'any goods specified in the Schedule of the Tariff Act, as being subject to a duty of excise'. The explanation appended to the said definition has provided that "for the purpose of this clause, 'goods' includes any article, material or substance, which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable". On reading of the said explanation clause, it would transpire that 'marketability' is an essential element for consideration of a product as 'excisable' for the purpose of levy and payment of Central Excise duty. It is an admitted fact on record that the appellant is engaged in the manufacture of sweetmeats (mithai), which in the trade parlance is called as Rasgulla, G....
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....heading 1702 90 90 of the Central Excise Tariff. The Department's contention is that since the sugar syrup is used in the manufacture of the exempted biscuits, the benefit of Notification No. 67/95-C.E. would not be available. In this regard, the contention of the appellant is that in terms of the proviso to Notification No. 67/95-C.E., the full duty exemption to intermediate products being used for captive consumption is available if a manufacturer discharges the obligation under Rule 6 of the Cenvat Credit Rules. We do not accept this plea, as in terms of proviso to Notification No. 67/95-C.E., the full duty exemption to intermediate product is available under this notification, even if the manufacturer has manufactured, in addition to ex....
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....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 the "invert sugar syrup" being manufactured by M/s. Dhampur Speciality Sugars Ltd. is being sold to M/s. Britannia Industries, M/s. J.B. Mangar....