2014 (3) TMI 237 - AT - Central Excise

Waiver of pre-deposit of duty - Dutiability of sugar syrup , an intermediate product manufactured and captively consumed by the applicants in the manufacture of their final products - Exempted vide Notification No.3/2007-CE, S.No.18A , dated 01.03.2007 - Held that - in the Sugar Invert Syrup, sugar content has nearly 80% by weight. This syrup has shelf life and is marketable and hence dutiable also. The Sugar Invert Syrup is not immediately consumed but and is retained for manufacture later - Assessee directed to make pre deposit - Conditional stay granted.

Summary

Issues involved:
Dutiability of 'sugar syrup' as an intermediate product for captively consumed final products exempted under Notification No.3/2007-CE, [S.No.18A].

Analysis:

1. Dutiability of 'sugar syrup':
The main issue in this case revolved around the dutiability of 'sugar syrup', an intermediate product used in the manufacturing process of final products exempted under a specific notification. The Tribunal considered the contentions of both parties regarding the marketability and sugar content of the syrup. The Revenue argued that the syrup in question, Sugar Invert Syrup, with 80% sugar content by weight, had a shelf life, was marketable, and hence, dutiable. The Tribunal, upon perusal of the adjudication order, found merit in the Revenue's submission. However, the appellant contended that the sugar syrup was not marketable, a stance to be examined during the appeal hearing.

2. Waiver of pre-deposit:
The applicant sought a waiver of pre-deposit of duty amounting to Rs.12,10,249/- along with interest and penalty. After hearing both sides and examining the records, the Tribunal directed the applicant to deposit a sum of Rs.3 lakhs within six weeks. Upon this deposit, the balance adjudged dues would be waived, and the recovery thereof stayed until the appeal's pendency. The applicant was instructed to report compliance by a specified date.

3. Precedent and Stay Order:
Reference was made to a previous case, Patwari Bakers Pvt. Ltd. Vs Commissioner of Central Excise, where a stay order was granted. The Revenue highlighted the differences between the two cases, emphasizing the marketability and sugar content of the syrup in the current case compared to the earlier one. The Tribunal acknowledged the previous stay order but noted the distinct circumstances of the present case, indicating a need for further examination during the appeal hearing.

In conclusion, the judgment addressed the dutiability of 'sugar syrup' as an intermediate product, the request for a waiver of pre-deposit, and the comparison with a previous stay order. The Tribunal's decision to direct a partial deposit while waiving the balance pending the appeal demonstrated a balanced approach to the issues raised during the proceedings.