1999 (2) TMI 281 - AT - Central Excise

Summary

Issues:
1. Classification of sugar syrup under Chapter Heading 1702.30 for duty payment.
2. Consideration of whether sugar syrup is excisable and liable for duty.
3. Requirement of remand based on factual evidence and previous tribunal judgments.

Analysis:

1. The primary issue in this case revolves around the classification of sugar syrup produced during the manufacture of a specific product under Chapter Heading 1702.30 for the purpose of duty payment. The revenue contends that the sugar syrup, as an intermediate product, falls under this classification and is subject to duty payment. However, the appellants argue that the sugar syrup lacks shelf life and is not considered goods, supported by a test result indicating the composition of the syrup and referring to a Board's Circular exempting sugar syrup without citric acid from duty liability. Both authorities failed to consider this evidence, leading to the contention that the impugned order lacks reasoning and necessitates a remand for further examination.

2. The appellants further argue that the impugned order is not a speaking order and fails to consider a previous tribunal judgment in a similar case, necessitating a remand for detailed testing to determine the presence of citric acid and sucrose content in the sugar syrup. The contention is that the sugar syrup is not marketable, lacks shelf life, and aligns with the criteria outlined in the Board's Circular, exempting it from duty payment. On the contrary, the revenue highlights a previous case where sugar solution was classified as excisable under Chapter sub-heading 1702.30, emphasizing the distinction based on sucrose content.

3. Upon careful consideration, the Tribunal distinguishes the present case from the previous judgment based on the sucrose content of the product under consideration. The Tribunal references a specific case where the matter was remanded for detailed examination based on the concentration of sucrose and the addition of citric acid in the sugar syrup. Emphasizing the need for factual assessment through chemical tests and manufacturing process analysis, the Tribunal sets aside the impugned orders and remands the matter for reconsideration, directing the original authority to consider the relevant Board's Circular in their assessment. The appeals succeed on the grounds of remand for further examination based on established legal principles and factual evidence.