9911796707
TMI Blog2014 (12) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a view that respondent should have paid duty on the sugar syrup cleared for captive consumption, proceedings were initiated for demanding duty for the period from 1-9-1996 to 31-3-2001. 2. The Commissioner in the impugned order has dropped the demand. Aggrieved by this decision, Revenue is in appeal. The duty demand was proposed on the ground that crocin syrup is manufactured and cleared without payment of duty. Hence, the sugar syrup manufactured and consumed at an intermediate stage is leviable to central excise duty. 3. The learned AR submits that in this case, the sugar syrup produced has sugar concentration of about 29% and as per the Circular No. 226/60/96-CX., dated 3-7-1996 and Circular No. 780/13/2004-CX., dated 12-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained. 5. We have considered the submissions made by both sides. As rightly submitted by the learned counsel for the respondent, just because the product can be kept for a week, it cannot be said that the same is marketable. There is no evidence of marketability produced by the Revenue either before the Commissioner or in the appeal memorandum. Further, we also find that the decision of the Hon'ble Supreme Court in the case of Moti Laminates Pvt. Ltd. (supra) is applicable to the facts of this case as regards marketability. Paragraph 11 of the decision of the Hon'ble S.C. is relevant and is reproduced as under : "11. It cannot thus be disputed that even if the resin produced by the appellants are resols as mentioned in item 15A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t once the product manufactured by the appellants answered the chemical description of the product under Tariff Item 15A it was assessable to duty whether it was marketable or not was thus not well founded." Further we also find that Commissioner has considered this aspect in the impugned order. Paragraphs 18, 19 & 20 of the impugned order are relevant and are reproduced below : "C.B.E. & C. has issued a clarification in its letter dated 3-7-1996 regarding the marketability of sugar syrup based on the opinion of the Chief Chemist. The above circular holds that sugar syrup has a shelf life and remains stable only when the concentration is 65% or above. When the concentration is less than 65% the shelf life can be improved only by adding pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
