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TMI Blog2018 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue neutral - The pre-mix powder having been cleared to their sister units, the entire exercise being revenue neutral one, the demand of duty invoking the extended period cannot sustain. Appeal allowed - decided in favor of appellant. - E/630/2009 - Final Order No. 40960/2018 - Dated:- 21-3-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Shri Santhana Gopalan. D, Advocate For the Appellant Shri S Govindarajan, AC (AR) For the Respondent ORDER Brief facts are that the appellants are engaged in the manufacture of Mosquito Coils falling under Chapter Heading No.3808.10. The Officers of Preventive Unit visited the premises on 31.8.2005 and found that they had cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of mosquito coils in the appellant's own sister unit. The Commissioner (Appeals) has held pre-mix to be an excisable intermediate product, observing that pre-mix powder is marketable. However no evidence is adduced by the department to establish that the pre-mix powder is capable of being marketed. The adjudicating authority had categorically observed that the pre-mix powder is not marketable. There is no process of manufacture involved in mixing the powders. Thus pre-mix powder was neither manufactured nor marketable and therefore the demand of duty cannot sustain. Further the product is not classifiable under Chapter heading 3824. 3. Without prejudice to the above argument, the Ld. Counsel submitted that the entire exercise is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore legal and proper. 5. Heard both sides. 6. The issue for consideration is the demand of duty on the pre-mix powder. The Ld. Counsel has brought to our notice that the said premix powder is stock transferred to their sister units at Guwahati from where it is used as inputs for manufacture of final product namely Mosquito coil. The final product is cleared on payment of duty. If the appellant had paid duty while clearing the pre-mix powder to their sister units, the same would be eligible for Cenvat Credit to their sister units at Guwahati. The entire exercise would be revenue neutral one. The Show Cause Notice dated 10/1/2008 is issued for the period 5/2004 to 8/2005 invoking the extended period. The Hon. Apex Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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