9911796707
TMI Blog2015 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... has two units, one unit in Chennai and the second Unit in Gurgaon, The Chennai Unit manufactures the sugar confectionary in bulk and clears the same on payment of duty to Gurgaon Unit. The Gurgaon Unit re-packs each piece of confectionary individually in retail pack and thereafter packs individual retail packs into bigger packages. There is no dispute that the process of re-packing undertaken by the Gurgaon Unit (the appellant) amounts to manufacture under section 2f(iii) of the Central Excise Act, 1944. The dispute in this present case is about classification of the product. According to the appellant the goods manufactured by them are "other sugar confectionary" classifiable under sub-heading 1704.90 of the Tariff, while according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal vide final order No.40197/2013 dated 3rd May, 2013 had set aside the Commissioner's order on the ground of limitation, observing that the composition of the product was known to the Department as the appellant had earlier been filing classification declarations giving the composition of the product, that in view of this, the present appeal would also not survive on the ground of limitation, that in any case, the appellant have strong prima-facie case on merit as while the product, in question, contains less than 1 % of Gum Arabic and the purpose of gum Arabic is to prevent crystallization of sugar and uniform distribution of fat, while in terms of para A.25.02.01 of the Prevention of Food Adulteration Rules, 1955, the chew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003 to February, 2005. However, the Tribunal in respect of appeal filed against this order, has set aside the Commissioner's order vide final order dated 03.05.2013 on the grounds of limitation, Since the proceedings against the Gurgaon Unit are based on proceedings against the Chennai Unit, and since in this case also the show cause notice for demand of duty for the period from April 2003 to February, 2005 has been issued by 30th April 2008, primafacie the same would also be time barred. 7. Apart from this, we also find merit in the appellant's plea that the goods covered under sub-heading 1704.10 would be those where it is the gum which gives them essential character and in-fact in terms of the Provisions of Food Adulteration R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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