9911796707
TMI Blog1998 (4) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty of Rs. 1,000/- has also been imposed on the appellant under Rule 173Q(1) of Central Excise Rules. The facts of the case are that the appellants manufacture what they called as sugar solution by dissolving the pure sugar in solid form in water and thereafter subjecting the solution to heating. This is not disputed. It is also not disputed that no power is used in the process of manufacture. 2. The moot point for consideration is whether the said solution is an excisable product and if so, whether it attracted excise duty under sub-heading 1702.30 as held in the impugned order-in-original. The second point for consideration is whether the demand is hit by time barred under Section 11A of the Act. 3. Heard the learned Advocate Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form and the Note 2 to Chapter 17 relates only to solid sugar under Heading 1701. Since the present product was in a solution form i.e. liquid form and not in solid form, its classification under Heading 1701 was ruled out. He further stressed that Note 2 to Chapter 17 of the Central Excise Tariff Act was only applicable, if the product was classified under Heading 1701 and therefore, it was not applicable to the present case. He further pointed out that the Harmonised System of Nomenclautre (Explanatory Note on page 132 under Section iv) clearly stated that simple syrup obtained by dissolving sugars in water were also `sugar syrups provided that they do not contain added flavouring or colouring matters. In this case too, there was no such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with natural honey; caramel. Furthermore Note 2 to Chapter 17 of the statute read as follows : For purposes of sub-heading Nos. 1701.10, 1701.20, 1701.31 and 1701.39 on sugar means any form of sugar in which this sucrose content if expressed as a percentage of the material dried to constant weight at 105oC would be more than 90. 9. On a plain reading of the aforesaid law, it is clear that the product which is covered under Heading 1701 as sugar should be only in solid form, because other type of sugars are covered under Heading 1702. It is also clear that Note 2 to Chapter 17 restricts itself to certain types of sugar falling under Heading 1701 only. Applying this law to the facts of the present case, the inevitable conclusion r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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