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2017 (11) TMI 692 - AT - Central ExciseN/N. 67/1995-CE - intermediate goods - captive consumption - sugar syrup - Held that - Co-ordinate Bench in the case of Rishi Bakers Pvt. Ltd., Kanpur 2015 (4) TMI 893 - CESTAT NEW DELHI held that there was no evidence to prove that sugar syrup captively consumed is classifiable under Tariff Item No.17029090, nor there is any evidence to prove that the goods in question, in the form in which they come into existence in the appellants factory, are marketable. Sugar syrup coming into existence during manufacture of biscuits and captively consumed, does not attract Central Excise duty for the reason that there is no evidence that the same is marketable. Appeal allowed - decided in favor of appellant.
Issues:
1. Classification of sugar syrup under Tariff Item No.17029090. 2. Applicability of Central Excise Duty on intermediate products. 3. Benefit of Notifications No.67/1995-CE and No.22/2007-CE. 4. Appeal against Orders-in-Original before Commissioner (Appeals). 5. Cenvat Credit on inputs and re-calculation of demand, interest, and penalty. 6. Interpretation of previous Final Orders by the Tribunal. 7. Marketability of sugar syrup captively consumed in biscuit manufacturing. Analysis: 1. The appeals addressed the classification of sugar syrup under Tariff Item No.17029090. The Revenue contended that the sugar syrup used by the appellants in biscuit manufacturing fell under this tariff item. However, the Tribunal found no evidence to support this classification, especially in terms of marketability of the sugar syrup as per the decision in the Rishi Bakers Pvt. Ltd. case. Consequently, the Tribunal ruled that the sugar syrup did not attract Central Excise duty. 2. The issue of Central Excise Duty on intermediate products arose due to changes in duty rates. Initially, the appellants were exempted under Notification No.67/1995-CE, but post 03.05.2007, goods with MRP below ?100/kg were exempt under Notification No.22/2007-CE. This change impacted the applicability of the earlier exemption, leading to demands for Central Excise duty on the intermediate product of sugar syrup captively consumed in biscuit manufacturing. 3. The Tribunal considered the benefit of Notifications No.67/1995-CE and No.22/2007-CE in the context of the case. The change in duty exemption criteria affected the intermediate product classification, leading to demands for Central Excise duty. The Tribunal's analysis focused on the specifics of the notifications and their impact on the appellants' manufacturing process. 4. Appeals were made against the Orders-in-Original before the Commissioner (Appeals) due to the demands for Central Excise duty on the intermediate product. The Commissioner (Appeals) upheld the original orders but directed the allowance of Cenvat Credit on inputs and a re-calculation of the demands, interest, and penalty. This led to the appellants approaching the Tribunal for further adjudication. 5. The Tribunal reviewed the issue of Cenvat Credit on inputs and the re-calculation of demands, interest, and penalty as directed by the Commissioner (Appeals). The final decision of the Tribunal was based on the interpretation of previous Final Orders by the Tribunal in similar cases, emphasizing consistency in decisions and precedents to ensure fair treatment. 6. The Tribunal considered the interpretation of previous Final Orders by the Tribunal, including the case of M/s Bhagwati Food Private Ltd., to determine the outcome of the present appeals. The consistency in decisions across similar cases played a crucial role in the Tribunal's final ruling on the classification and taxation of the sugar syrup captively consumed in biscuit manufacturing. 7. Central to the judgment was the issue of marketability of the sugar syrup captively consumed during biscuit manufacturing. The Tribunal emphasized the lack of evidence supporting the marketability of the sugar syrup, which influenced the decision that the sugar syrup did not attract Central Excise duty. This assessment was crucial in determining the tax liability on the intermediate product in question.
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