2012 (8) TMI 210 - AT - Central Excise

Excisability of sugar syrup, being manufactured by the appellant at the intermediate stage of manufacture of edible biscuits and used by them captively - appellants contention that sugar syrup manufactured by them is not marketed on account of various factors like short shelf life etc. and hence the same is not excisable Held that - Matters were remanded for denovo decision with the direction to establish the marketability of the product and to decide the consequent excisability.

Summary

Issues involved:
Excisability of sugar syrup manufactured by the appellant at the intermediate stage of manufacture of edible biscuits.

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi, involved the issue of excisability of sugar syrup manufactured by the appellant at the intermediate stage of edible biscuit production. The Tribunal, comprising Ms. Archana Wadhwa and Mr. Rakesh Kumar, proceeded with the appeal after dispensing with the pre-deposit condition of demand and penalties. Both parties consented to the decision as the issue had been previously decided by the Tribunal. The appellant, represented by Shri J. Mahajan, argued that the sugar syrup was not excisable due to factors like a short shelf life, while the Revenue, represented by Shri B.K. Singh, contended that the product was marketable and hence excisable.

The Tribunal considered the arguments presented by both sides and referred to a previous decision in the case of M/s. Ajmer Food Products P. Ltd. The Tribunal had remanded the matter in that case for a denovo decision to establish the marketability of the product and determine its excisability. In light of this precedent, the Tribunal set aside the impugned order and remanded the current matter to the original adjudicating authority for a fresh consideration. The decision emphasized the need to establish the marketability of the sugar syrup to determine its excisability, following the direction provided in the referenced order.

In conclusion, the judgment highlighted the importance of establishing the marketability of the product in question to determine its excisability. The Tribunal's decision to remand the matter for a fresh consideration underscored the significance of assessing whether the sugar syrup manufactured by the appellant was indeed marketable, a crucial factor in the excisability determination.