2012 (4) TMI 139 - AT - Central Excise

Classification of products arising out of conversion of sugar assessee engaged in the business of conversion of duty paid sugar into mishri, batasha, makhana and similar items - Revenue contending classification of bura under heading 1701.99 and other products Mishri and Makhana to be classified under heading 1704.90 assessee contending such conversion not amounting to manufacture Held that - Since similar appeals of some other parties have already been remanded by the Tribunal for denovo decision considering all the relevant aspects. Therefore, impugned orders are set aside and matter is remanded to the adjudicating authority for denovo decision

Summary

Issues:
Classification of converted sugar products under Central Excise Act, 1944.

Analysis:
The appellants were involved in converting duty paid sugar into different products like mishri, batasha, and makhana. They argued that this conversion process did not amount to manufacturing, while the revenue contended that it did. The revenue also argued that the converted products were distinct from sugar and had different names and characteristics, being sold for different purposes. There was a dispute regarding the classification of these products under different headings within the Central Excise Act.

Show cause notices were issued demanding duty based on the manufacturing of new commodities and their classification as suggested by the revenue. The adjudicating authority confirmed the duty demand, interest, and penalty under relevant sections of the Central Excise Act and Rules. The appellants appealed against these orders, seeking a denovo decision considering all relevant aspects, similar to other cases remanded by the Tribunal.

The Tribunal, with the consent of both parties, set aside the impugned orders and remanded the appeals to the original authorities for a fresh decision. The Tribunal emphasized the need to consider all relevant aspects, legal submissions, and Board circulars, giving the appellants an opportunity to present their case. The appeals were allowed, and the matter was remanded for a denovo decision, keeping all issues open for consideration by the adjudicating authorities.

The revenue did not dispute the need for a denovo decision and agreed to the remand of the appeals for a fresh decision. Consequently, the appeals were allowed, the impugned orders were set aside, and the matter was remanded to the adjudicating authority for a fresh decision, considering all relevant issues and aspects raised in the appeals. Finally, the appeals and stay applications were disposed of accordingly.