2004 (4) TMI 254 - AT - Central Excise

Summary

Issues: Whether sugar syrup produced at the intermediary stage of manufacturing a finished product is chargeable to Excise duty.

Analysis:
1. The appeals were filed by a company manufacturing various products using sugar as an input. The issue revolved around the excisability of sugar syrup produced during the manufacturing process.
2. The company's advocate argued that the sugar syrup did not have a shelf life as no preservatives were added, citing a previous order and a Board's Circular. However, the Commissioner (Appeals) held that the sugar syrup prepared by the company had a shelf life and was excisable.
3. The Department's representative referred to a recent Board Circular stating that marketability determines excisability, regardless of sugar concentration. The Commissioner (Appeals) found the syrup marketable based on its preparation process and shelf life.
4. The Tribunal reviewed the Circulars and arguments. It noted the lack of evidence on the sugar concentration in the syrup and the absence of proof of marketability. Consequently, the Tribunal set aside the Commissioner's decision and remanded the case to determine the marketability of the sugar syrup.

This detailed analysis of the judgment highlights the arguments presented by both sides, the relevant Circulars, and the Tribunal's decision to remand the case for further assessment of the marketability of the sugar syrup.