2025 (9) TMI 1810

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts are M/s. Vishaal Natural Food Products (I) Pvt. Ltd., the Appellant a 100% EOU is engaged in the manufacture of 'Gherkins' an agricultural produce for export. The details of the appeals are as follows; (Amt. in Rupees) Appeal No. Period Order-in-Appeal No. date SCN date Duty involved Penalty Imposed Redemption Fine C/21698/2016 2007- 08 58/2016 17.08.2016 16.07.2008 2,28,639 10000 - C/21697/2016 2008- 09 59/2016 dated 17.08.2016 10.03.2010 7,i7,524 25000 25000 3. The issue involved in the above 2(two) appeals is related to excess consumption of 'Vinegar' with reference to Standard Input Output Norms (SION) as per the Hand Book of Procedures issued by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....from Europe and the USA. b. Indian vinegar manufacturers can only produce up to 13% strength. c. The SION does not mention any % strength of vinegar to be used and simply says 0.40 per kg. d. To demonstrate the % strength of the vinegar (i.e. concentration), we arrive at the following analysis: Production of Gherkins in Kilograms Vinegar Used (Liters) Concentration of Vinegar Used ( %) Vinegar required per Kilogram 662068 291309.90 13% 0.44 662068 271447 14% 0.41 662068 238344 15% 0.38 662068 238344 16% 0.36 662068 225103 17% 0.34 7. The learned counsel submits that as vinegar is for exports, the customer defines the % of acidit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd the SION norms, as long as it is used in manufacture of final products, then no demand can be made on such excess consumption of inputs. a. Commissioner of Customs, Bangalore Vs. Intergarden India Pvt., Ltd. (C/574/2007)-excess vinegar consumption; b. M/s. J.J. Glastronics Pvt. Ltd. Vs. Commissioner Of Central Excise, Bangalore-[2024 (11) TMI 65 CESTAT Bangalore] - excess consumption of Milled Glass Powder. c. M/s. Deep Recycling Industries & Ors. Vs. C.C.E & S.T- Rajkot- 2024(3) TMI 970-Cestat Ahmedabad] - excess metal brass scrap consumed. d. M/s. Goodluck Garments Pvt. Ltd. Vs. Commissioner Of Central Excise & Customs, Surat-II-[2019 (1) TMI 1514 Gujarat High Court ]- Excess consumption of fabrics. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ppellate authority has reduced the same. Levying penalty twice is not as per law; places reliance on the case of M/s. Leadage Alloys India Ltd Vs. Commissioner of Central Excise, Service Tax and Customs Bangalore-II-[2017-TIOL-2263-CESTAT-BANG] wherein it is held that when the goods are not available for confiscation, redemption fine in lieu of confiscation cannot be levied. Further, submits as there is no duty liability, interest cannot be demanded. 14. The learned Authorised Representative (AR) for the Revenue reiterated the findings of Commissioner (Appeals) in the impugned orders. 15. Heard both sides and perused the records. 16. The issue involved in these 2(two) appeals is with regard to demand of customs duty along with inte....