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TMI Blog1987 (10) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the appellants were not marketing these products would not make any difference to their excisability since they could be marketed though under controlled conditions to arrest the rate of deterioration. On this basis, the Appellate Collector confirmed the Assistant Collector s Order dated 18-10-1979. The Appellants are now in appeal before this Tribunal against the aforesaid order of the Appellate Collector. 2. We have heard Shri Anil Diwan, Counsel for the appellants and Smt. Dolly Saxena, Sr. D.R. for the respondent Collector. 3. Before we discuss the submissions before us; it is expedient to set out the tariff item 1E and the manufacturing process adopted by the appellants. Item No. 1E reads as follows :- GLUCOSE AND DEXTROS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dextrose was but a form of glucose classifiable under Item No.1E CET. Shri Anil Diwan, however, pointed out that the Allahabad High Court s judgment in the Union Carbide case (supra) on which the Tribunal had based its conclusion had since been reversed by the Supreme Court in its judgment reported in 1986 (24) E.L.T. 169. 6. In the Union Carbide case referred to above, the goods were aluminium cans or torch bodies and the issue was whether they were liable to duty under Item No. 27(e) of the CET. The company s contention before the Supreme Court was that the aluminium cans produced by them, could not be described as goods for the purpose of excise duty since they were not marketable and were prepared entirely by the appellants for the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the torch bodies or aluminium cans were in unfinished and crude form which was not the case in the present matter. In this context, she cited the Tribunal s decision in the case of Hindustan Ferodo Ltd. v. Collector of Central Excise, Bombay 1987 (30) E.L.T. 502. The dispute in that case was with reference to rings punched from asbestos boards and certain types of asbestos fabrics and the issue was whether these products which arose at an intermediate stage in the appellant s factory and used by them captively for further manufacture of automotive brake linings and clutch facings ,were liable to duty under Item No. 22F (4) CET. The Supreme Court s judgment in the Union Carbide case (supra) was distinguished on facts by the Tribunal which o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the product would be goods for the purpose of levy of excise duty. On this basis, it was held that starch slurry was not liable to excise duty. 9. It was Shri Anil Dewan s submission that the ratio of the decision on starch slurry applied with equal force to the present goods. The appellants had not marketed these goods nor had the department shown that they had a market. We note that the show cause Notice dated 6-7-1979, apart from stating that the appellants had eliminated wet dextrose and mother liquor from the classification list filed by them though they were manufacturing and clearing these products (and had earlier declared them as excisable under Item No. 1E which was approved by the department), did not put forth any material to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed conditions to arrest the rate of deterioration. The syruppy liquid which is marketed, as stated in the passage aforesaid, is corn syrup which is stated to be usually not pure glucose as it contains some dextrins and maltose. There is no material on record to show that the present goods are the same thing as corn syrup or akin to it. We have also seen the notes on Glucose and Glucose syrup at P. 500 of the 10th edition of the Condensed Chemical Dictionary by Gessner G. Hawley as also the relevant passages in Kirk Othmer s Encyclopaedia of Chemical Technology and the Merck Index . We have not been able to see any material in these books to support the department s contention that wet dextrose and mother liquor are products which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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