2018 (2) TMI 695 - AT - Central Excise

Classification of goods - sugar syrup - captive consumption - whether the sugar syrups prepared in the assessee s factory, who is primarily engaged in the manufacture of biscuits, are classifiable under Tariff Item 17029090? - Held that - this Bench of the Tribunal in the appellants own case, Swati Biscuit Manufacturing Company And Others Versus Commissioner of Customs, Central Excise And Service Tax, Allahabad And Vice-Versa 2018 (2) TMI 522 - CESTAT ALLAHABAD has held that the sugar syrup in question is not marketable and hence not excisable - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of sugar syrup under Tariff Item 17029090, demand of excise duty, penalties imposed

In the judgment delivered by the Appellate Tribunal CESTAT, ALLAHABAD, the issue at hand was the classification of sugar syrup prepared in the appellant's factory, primarily engaged in biscuit manufacturing, under Tariff Item 17029090. The impugned order confirmed a demand of excise duty against the appellant for the sugar syrup consumed in biscuit production, along with penalties imposed by the Lower Authorities.

Upon hearing the Assistant Commissioner and reviewing the impugned orders, the Tribunal referred to its previous decision in the appellant's case, where it was held that the sugar syrup in question was not marketable and therefore not excisable. Citing this precedent, the Tribunal set aside the impugned order and allowed both appeals, providing consequential relief to the appellants if applicable.

This judgment highlights the importance of proper classification of goods under relevant tariff items for excise duty purposes. It emphasizes the significance of past precedents in determining the excisability of goods and the impact of such decisions on the outcome of similar cases. The Tribunal's decision serves as a reminder of the need for consistency and adherence to established legal principles in excise duty matters.