9911796707
TMI Blog1982 (1) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... cises and Salt Act, 1944 and at the time of common hearing before the Government. 2. Briefly stated, the facts of the case are that the party have been manufacturing whole milk powder and skimmed milk powder, putting up the same in cloth bags/polythene bags for storage purposes, and captively consuming the same in regeneration of liquid milk and manufacture of milk products therefrom without payment of Central Excise duty. The Department issued a show cause notice dated 30-3-77 asking the party to show cause as to why duty under Item 1B of the Central Excise Tariff should not be demanded on the whole milk powder and skimmed milk powder so manufactured and captively consumed by them and why penalty should not be imposed for violating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively of the view that the said order of the Appellate Collector was not correct, legal and proper inasmuch as the scope of the aforesaid Notification should be restricted to the grant of the benefit of concessional rate only to such cases where skimmed milk powder is utilised for regenerating liquid milk when cleared as such from the factory of production. The Government accordingly issued show cause notice under Section 36(2) of the Central Excises and Salt Act, 1944 proposing to set aside the order of the Appellate Collector or to pass such other order as deemed fit. 4. In the revision application mentioned in para 2 above, the petitioners have mainly contended that the whole milk powder as well as the skimmed milk powder on which dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revision application. 7. The Government observe that the Tariff entry of Item 1B of Central Excise Tariff reads as Prepared or preserved foods put up in unit containers and ordinarily intended for sale, including preparation of vegetables, fruit, milk, cereals, flour, starch, birds, eggs .. not elsewhere specified . Therefore, Government consider that for any goods to be liable to be classified under item 1B of the Central Excise Tariff the same should be put up in unit containers and ordinarily intended for sale . The Government consider that in the instant case since the goods in question which were stored for captive consumption in future and not ordinarily intended for sale, cannot, therefore, be considered to be covered by Item 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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