9911796707
TMI Blog1997 (8) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellants were manufacturing branded goods i.e. Honeyrex and cleared the same without following the Central Excise procedure, without payment of duty. The officers visited the factory and took statement from Ajaypal Singh, Manager who stated that their product Honeyrex is not an excisable commodity. Show cause notice was issued to the appellants requiring them to show cause as to why Central Excise Duty of Rs. 6,68,003/- should not be demanded from them for the clearances of the goods during the period 1986-87 to 1990-91. The appellants in their reply stated that Honeyrex is nothing but honey added with sucrose and glucose and then additives are added for preserving the honey. Therefore, no new product emerged and the characteristics ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 4 of Central Excise Act, 1944, the value has to be re-determined based on the normal cum duty price as under : He has pleaded that the Collector merely brushed aside this contention holding that CEGAT decision in this regard is not produced. He pointed out that even if CEGAT decision is not produced, the Collector should have given a reasoned finding in this regard. 3. Shri S. Murugandi, the learned DR on the other hand contended before us that mixing of honey with sucrose and glucose resulted in a new product and the new product cannot be said to be natural honey. He, therefore, pointed out that honey is specified under Heading 1702.30. He pointed that as per Rule 3A for the interpretation of Schedule of heading which provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral honey. Further, the appellants are not marketing the same as natural honey. It is marketed by the name of Honeyrex. Their contention is that by addition of these ingredients the product does not lose its characteristics of natural honey. We are not impressed by this argument. It is seen that because of addition of ingredients like sucrose, glucose and preservatives a new product emerged and the new product is different from natural honey and it has to be classified as artificial honey under Tariff Heading 1702.30. Therefore, we are of the view that the lower authority has rightly come to the conclusion that the item is a preparation of natural honey, since it was manufactured by mixing glucose, and sucrose along preservatives. The HSN n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact with intent to evade payment of duty and therefore, longer period of limitation is invokable in this case. 7. As regards imposition of penalty is concerned, the appellants had made a plea before the adjudicating authority that the value should be re-worked, but the adjudicating authority has not given any finding in this regard. The appellants pleaded before the lower authority that there is a CEGAT decision in this case. But that decision of CEGAT was not placed before him. In para 16 of the impugned order, the lower authority has held as under : "The next argument put forth is that the value needs to be redetermined by adopting the formula. According to the assessee, such a view is taken by CEGAT. In the absence of citing spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 4(4)(d)(ii) will arise. In other words, if duty is payable by the manufacturer that will be eligible for deduction from the price. As has come out in the facts of this case, the price realised by the respondent was cum-duty price, and as duty was leviable on the goods and had, in fact, paid pursuant to the impugned order passed by the Additional Collector of Central Excise, the deduction of the duty element claimed for arriving at the assessable value was justified. It will make no difference whether the duty amount has been paid by the assessee at the time of clearance of the goods or it was paid subsequently. What is material is that the excise duty was payable on the goods. The impugned order in this behalf is, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
