9911796707
TMI Blog2013 (1) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... t - Held that:- Following the decision in case of SHRI VARALAKSHMI CO. (2008 (8) TMI 661 - CESTAT, NEW DELHI) affirmed by the Hon'ble apex court. The issue is no longer 'res integra', therefore, the appellants are not liable to pay duty on 'wet starch' captively consumed in the manufacture of final product - 'Sago', which is exempted from duty Penalties are imposed u/s 11AC on account of non-pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... starch' which emerges during the course of manufacture of Sago', a final product, which is exempted from duty. As this wet starch' is a marketable commodity and is captively consumed, by the appellants in the manufacture of final exempted product, therefore, they are liable to duty along with interest and penalty. A penalty has also been confirmed under Section 11AC of the Central Excise Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the appeals are taken up together for disposal by a common order. 3. The issue, whether the 'wet starch', which is an intermediate product which emerges during the course of manufacture of final product - 'Sago', which is exempted from payment of duty (is liable to excise duty or not). The said issue carne up before this Tribunal in the case of M/s. Sri Varalakshmi Company, wherein, this Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 11AC of the Act on account of non-payment of duty in time. We find that the appellants were pursuing with the Ministry for making the product exempted from duty, therefore, the ingredients of Section 11 AC i.e., fraud, collusion, willful mis-statement, suppression of facts all contravention of the provisions of the Act and Rules thereunder with intent to evade duty are missing, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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